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HomeMy WebLinkAbout FULL PACKET_2019-06-18MINUTES OF THE SPECIAL CLOSED AND THE REGULAR CLOSED AND OPEN MEETING OF THE CITY COUNCIL OF THE CITY OF SANTA ANA, CALIFORNIA MAY 21, 2019 SPECIAL CLOSED SESSION MEETING CALLED TO ORDER COUNCIL CHAMBER 22 CIVIC CENTER PLAZA 3:07 P.M. ATTENDANCE COUNCILMEMBERS Present: MIGUEL A. PULIDO, Mayor (3:10 P.M.) JUAN VILLEGAS, Mayor Pro Tern CECILIA IGLESIAS DAVID PENALOZA VICENTE SARMIENTO COUNCILMEMBERS Absent: JOSE SOLORIO *WARD 4 VACANT STAFF Present: KRISTINE RIDGE, City Manager JOHN FUNK, Assistant City Attorney NORMA MITRE, Acting Clerk of the Council * Ward 4 councilmember representative resigned on Friday, March 1, 2019. PUBLIC COMMENTS — None. COUNCIL RECESSED to Room 147 for Closed Session discussion at 3:07 p.m. CLOSED SESSION ITEMS - The Brown Act permits legislative bodies to discuss certain matters without members of the public present. The City Council finds, based on advice from the City Attorney, that discussion in open session of the following matters will prejudice the position of the City in existing and anticipated litigation: 1. Public Employee Employment / appointment pursuant to Government Code 54957 Title: Clerk of the Council, Acting Clerk of the Council, or Interim Clerk of the Council CLOSED SESSION REPORT - See Item 19A for any reportable actions. ADJOURNED SPECIAL CLOSED SESSION MEETING AT 5:03 P.M. AND CONVENED TO THE REGULAR CLOSED SESSION MEETING AT 5:04 P.M. CITY COUNCIL MINUTES 1 MAY 21, 2019 10A-1 MINUTES OF THE REGULAR CLOSED SESSION MAY 21, 2019 REGULAR CLOSED SESSION MEETING CALLED TO ORDER COUNCIL CHAMBER 22 CIVIC CENTER PLAZA 5:04 P.M. ATTENDANCE COUNCILMEMBERS Present: MIGUEL A. PULIDO, Mayor JUAN VILLEGAS, Mayor Pro Tern CECILIA IGLESIAS DAVID PENALOZA VICENTE SARMIENTO JOSE SOLORIO (5:14 P.M.) COUNCILMEMBERS Absent: *WARD 4 VACANT STAFF Present: KRISTINE RIDGE, City Manager JOHN FUNK, Assistant City Attorney NORMA MITRE, Acting Clerk of the Council * Ward 4 councilmember representative resigned on Friday, March 1, 2019. PUBLIC COMMENTS Tim Johnson, addressed City Council to express concern over response to ongoing litigation regarding homeless issue. COUNCIL RECESSED to Room 147 for Closed Session discussion at 5:06 p.m. *Mayor Pulido left the Regular Closed Session meeting at 5:43 P.M. and did not return. CLOSED SESSION ITEMS - The Brown Act permits legislative bodies to discuss certain matters without members of the public present. The City Council finds, based on advice from the City Attorney, that discussion in open session of the following matters will prejudice the position of the City in existing and anticipated litigation: 1. CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION pursuant to paragraph (1) of subdivision (d) of Section 64956.9 of the Government Code: A) Orange County Catholic Worker, et al. v. Orange County, et al.., U.S. District Court (Central District of California), Case No. SA CV 18-0155-DOC (KESx) CITY COUNCIL MINUTES 2 MAY 21, 2019 10A-2 B) City of Santa Ana v. County of Orange, et al., (Cross -Complaint), U.S. District Court (Central District of California), Case No. SA CV 18-0155-DOC (KESx) 2. Public Employee Employment / appointment pursuant to Government Code 54957 Title: Clerk of the Council, Acting Clerk of the Council, or Interim Clerk of the Council CLOSED SESSION REPORT - See Item 19A for any reportable actions. ADJOURNED THE CLOSED SESSION MEETING AT 6:19 P.M. AND CONVENED TO THE REGULAR OPEN MEETING. CITY COUNCIL MINUTES 3 MAY 21, 2019 10A-3 REGULAR OPEN MEETING CALLED TO ORDER COUNCIL CHAMBER 22 CIVIC CENTER PLAZA 6:21 P.M. ATTENDANCE COUNCILMEMBERS Present: JUAN VILLEGAS, Mayor Pro Tern CECILIA IGLESIAS DAVID PENALOZA VICENTE SARMIENTO JOSE SOLORIO COUNCILMEMBERS Absent: MIGUEL A. PULIDO, Mayor *WARD 4 VACANT STAFF Present: KRISTINE RIDGE, City Manager JOHN FUNK, Assistant City Attorney NORMA MITRE, Acting Clerk of the Council * Ward 4 councilmember representative resigned on Friday, March 1, 2019. PLEDGE OF ALLEGIANCE INVOCATION CEREMONIAL PRESENTATIONS MAYOR PULIDO JACK ABEELEN, POLICE CHAPLAIN • CERTIFICATES OF RECOGNITION presented by COUNCILMEMBER SARMIENTO recognizing Santa Ana Unified School District, Santa Ana Chamber of Commerce, Chevita Juice, Mobile Food Truck Association, and Orange County United Wayfortheir contributions to the 2019 National Forensics Association Tournament. • PROCLAMATION presented by COUNCILMEMBER SOLORIO recognizing May 19th through May 25th, 2019 as National Public Works Week. • PROCLAMATION presented by MAYOR PRO TEM VILLEGAS recognizing May 6th through May 11th, 2019 as Wildfire Awareness Week. • CERTIFICATE OF RECOGNITION presented by COUNCILMEMBER PENALOZA recognizing Crown Castle for their contributions to the community. CITY COUNCIL MINUTES 4 MAY 21, 2019 10A-4 CLOSED SESSION REPORT - See Agenda Item 19A for Closed Session Report. PUBLIC COMMENTS - None. ITEMS 13A, 13B, 13C, 13D, 13G, AND 65A TAKEN OUT OF ORDER. BOARDS / COMMISSIONS / COMMITTEES 13A. APPOINT CHRISTOPHER LEO NOMINATED BY MAYOR PRO TEM VILLEGAS AS THE WARD 5 REPRESENTATIVE TO THE SANTA ANA 2018 MEASURE X CITIZEN OVERSIGHT COMMITTEE FOR A FULL -TERM EXPIRING DECEMBER 8, 2020 (STRATEGIC PLAN NO. 5, 1) - Clerk of the Council Office MOTION., Appoint Christopher Leo to the Santa Ana 2018 Measure X Citizen Oversight Committee representing Ward 5. MOTION: Penaloza SECOND: Iglesias VOTE: AYES: Iglesias, Penaloza, Solorio, Villegas (4) NOES: None (0) ABSTAIN: None (0) ABSENT: Pulido, Sarmiento (2) * Ward 4 representative vacant. 13B. APPOINT MICHELE MARTINEZ NOMINATED BY COUNCILMEMBER SARMIENTO AS THE WARD 1 REPRESENTATIVE TO THE SANTA ANA 2018 MEASURE X CITIZEN OVERSIGHT COMMITTEE FOR A FULL -TERM EXPIRING DECEMBER 8, 2020 {STRATEGIC PLAN NO. 5, 1} - Clerk of the Council Office MOTION: Appoint Michele Martinez for to the Santa Ana 2018 Measure X Citizen Oversight Committee representing Ward 1. MOTION: Penaloza SECOND: Iglesias VOTE: AYES: Iglesias, Penaloza, Solorio, Villegas (4) NOES: None (0) ABSTAIN: None (0) ABSENT: Pulido, Sarmiento (2) * Ward 4 representative vacant. CITY COUNCIL MINUTES 5 MAY 21, 2019 10A-5 13C. APPOINT ALONZO LUGO NOMINATED BY COUNCILMEMBER SOLORIO AS THE WARD 3 REPRESENTATIVE TO THE SANTA ANA 2018 MEASURE X CITIZEN OVERSIGHT COMMITTEE FOR A FULL -TERM EXPIRING DECEMBER 8, 2020 {STRATEGIC PLAN NO. 5, 11 - Clerk of the Council Office MOTION: Appoint Alonzo Lugo to the Santa Ana 2018 Measure X Citizen Oversight Committee representing Ward 3. MOTION: Penaloza SECOND: Iglesias VOTE: AYES: Iglesias, Penaloza, Solorio, Villegas (4) NOES: None (0) ABSTAIN: None (0) ABSENT: Pulido, Sarmiento (2) * Ward 4 representative vacant. 13D. APPOINT ABIGAIL LANDAVERDE NOMINATED BY COUNCILMEMBER PENALOZA AS THE WARD 2 REPRESENTATIVE TO THE SANTA ANA 2018 MEASURE X CITIZEN OVERSIGHT COMMITTEE FOR A FULL -TERM EXPIRING DECEMBER 13, 2022 {STRATEGIC PLAN NO. 5, 1) - Clerk of the Council Office MOTION: Appoint Abigail Landaverde to the Santa Ana 2018 Measure X Citizen Oversight Committee representing Ward 2. MOTION: Penaloza SECOND: Iglesias VOTE: AYES: Iglesias, Penaloza, Solorio, Villegas (4) NOES: None (0) ABSTAIN: None (0) ABSENT: Pulido, Sarmiento (2) * Ward 4 representative vacant. 13G. APPOINT KEITH CARPENTER NOMINATED BY COUNCILMEMBER IGLESIAS AS THE WARD 6 REPRESENTATIVE TO THE SANTA ANA 2018 MEASURE X CITIZEN OVERSIGHT COMMITTEE FOR A FULL -TERM EXPIRING DECEMBER 13, 2022 {STRATEGIC PLAN NO. 5, 1} - Clerk of the Council Office MOTION: Appoint Keith Carpenter to the Santa Ana 2018 Measure X Citizen Oversight Committee representing Ward 6. CITY COUNCIL MINUTES 6 MAY 21, 2019 10A-6 MOTION: Penaloza SECOND: Iglesias VOTE: AYES: Iglesias, Penaloza, Solorio, Villegas (4) NOES: None (0) ABSTAIN: None (0) ABSENT: Pulido, Sarmiento (2) * Ward 4 representative vacant. ACTING CLERK OF THE COUNCIL ADMINISTERED OATH OF OFFICE TO THE NEWLY APPOINTED SANTA ANA 2018 MEASURE X CITIZENS OVERSIGHT COMMITTEE MEMBERS: • Michele Martinez • Abigail Landaverde • Keith Carpenter ITEM 65A TAKEN OUT OF ORDER. REPORTS 65A. RECEIVE AND FILE RESPONSE TO REQUEST FOR INFORMATION ON MOBILE HOME PARKS (STRATEGIC PLAN NO 5, 3; 5, 4; 5, 6) — Community Development Agency and Planning and Building Agency The following spoke on the matter • Renee Rowley, in support of rent control. • Winn Trinh, in support of rent control. • Quoc Pham, addressed City Council to express concern as to rent increases. • Hiep Nguyen, addressed City Council to express concern as to rent increases. • Allen Soper, addressed City Council to express concern as to rent increases. • Mary Lang Le, addressed City Council to express concern as to rent increases. • Khai Vu, addressed City Council to express concern as to rent increases. • Teray Le Bo, addressed City Council to express concern as to rent increases. • Mary Jo Baretich, in support of rent stabilization. • Cynthia Guerra, addressed City Council to express concern as to rent increases. • Crystal Aigna, addressed City Council to express concern as to rent increases. • Dao Tran, addressed City Council to express concern as to rent increases. CITY COUNCIL MINUTES 7 MAY 21, 2019 10A-7 • Huon A Luong, addressed City Council to express concern as to rent increases. • Minh Tam Nguyen, addressed City Council to express concern as to rent increases. • Chien Huynh, addressed City Council to express concern as to rent increases. • Vy Nguyen, addressed City Council to express concern as to rent increases. • Tuat Mai, addressed City Council to express concern as to rent increases. • Bernice and Ray Howard, in support of rent stabilization. • James Osborne, addressed City Council to express concern as to rent increases. • Anna Dang, addressed City Council to express concern as to rent increases. • Lynn Bien, addressed City Council to express concern as to rent increases. • Viorel Arlin, in support of rent stabilization. • Pedro Correa, addressed City Council to express concern as to rent increases. • Manuel Barrera, addressed City Council to express concern as to rent increases. • Rosanne Clark, in support of rent stabilization. • Julie Paule, opposed to rent control. • Clay Hage, opposed to rent control. • Chad Casenhiser, opposed to rent control. • John Yeandle, opposed to rent control. • Greg Wilson, opposed to rent control. and of moratorium to rent increases. • Jim Toffe, supportive of long term leases. • Sal Ortiz, opposed to rent control. • Lisa Sibel, supportive of long term leases. • Vickey Talley, expressed commitment to work with residents. • Rosa Perzano, addressed City Council to express concern as to rent increases. • Cesar Medina, addressed City Council to express concern as to rent increases. • Qui Vuong, addressed City Council to express concern as to rent increases. • Kayeligh Levitt, in support of moratorium to rent increases. Council discussion ensued. City Manager Kristine Ridge spoke regarding the comprehensive report included in the staff report. Councilmember Sarmiento, directed City Manager to continue to work with Mobile Park owners and residents to find an equitable solution to rental increase issue. Councilmember Penaloza spoke. CITY COUNCIL MINUTES 8 MAY 21, 2019 10A-8 Councilmember Iglesias, requested staff to determine how many residents receive rental assistance, assistance requirements, and to provide a sample of a long-term lease. City Manager Kristine Ridge spoke Mayor Pro Tern Villegas, echoed statements made by Councilmember Iglesias. MOTION: Receive and file Mobile Home Parks Report and provide direction to the City Manager and City Attorney regarding options to address rent increases in mobile home parks within the City. MOTION: Iglesias SECOND: Penaloza VOTE: AYES: Iglesias, Penaloza, Sarmiento, Villegas(4) NOES: None (0) ABSTAIN: None (0) ABSENT: Pulido, Solorio (2) * Ward 4 representative vacant. Mayor Pro Tern inquired as CONSENT CALENDAR ITEMS MOTION: Approve staff recommendations on the following Consent Calendar Items 10A through 25G, with the following modifications: • Items 13A, 13B, 13C, 13D, and 13G; and 65A considered earlier for separate vote and/or discussion. • Councilmember Iglesias, pulled Agenda Items 19C, 22A, 23A, 23B, 25A, and 25C for separate discussion. • Councilmember Penaloza pulled Items 22A, 23A, 23B, 25A, and 25C for separate discussion. • Councilmember Sarmiento pulled Item 19E for separate discussion. MOTION: Sarmiento VOTE: AYES: SECOND: Villegas Iglesias, Penaloza, Sarmiento, Solorio, Villegas (5) CITY COUNCIL MINUTES 9 MAY 21, 2019 1OA-9 NOES: None (0) ABSTAIN: None (0) ABSENT: Pulido(1) * Ward 4 representative vacant. ADMINISTRATIVE MATTERS MINUTES 10A. MINUTES FROM THE REGULAR MEETING OF APRIL 16, 2019 {STRATEGIC PLAN NO. 5, 1) — Clerk of the Council Office MOTION: Approve Minutes. ORDINANCES/SECOND READING In the event a Councilmember recorded an "abstention" before consideration of the following ordinance(s) on first reading, such abstention will also be reflected in the minutes for second reading. 11A. ADOPT AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING SECTION 10-196 TO 10-199 TO CHAPTER 10, ARTICLE III OF THE SANTA ANA MUNICIPAL CODE RELATING TO THE RECOVERY OF EMERGENCY RESPONSE COSTS FOR DRIVING UNDER THE INFLUENCE INCIDENTS{STRATEGIC PLAN NO. 5, 11 - Clerk of the Council Office Placed on first reading at the May 7, 2019 City Council meeting and approved by a vote of 6-0. Published in the Orange County Reporter on May 10, 2019. MOTION: Place ordinance on second reading and adopt. ORDINANCE NO. NS-2965 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING SECTIONS 10-196 TO 10-199 TO CHAPTER 10, ARTICLE III OF THE SANTA ANA MUNICIPAL CODE AND RE- CLASSIFYING ARTICLE III TO INCLUDE A SECTION FOR THE RECOVERY OF EMERGENCY RESPONSE COSTS FOR DRIVING UNDER THE INFLUENCE INCIDENTS BOARDS / COMMISSIONS / COMMITTEES ITEMS 13A 13B, 13C, 13D, AND 13G CONSIDERED EARLIER. CITY COUNCIL MINUTES 10 MAY 21, 2019 10A-10 13E. APPOINT IGNACIO ALEGRE, BOB TUCKER, DENNIS VARNUM AND CHRISTINIE SNAPPER TO THE WORKFORCE DEVELOPMENT BOARD FOR A FOUR YEAR TERM EXPIRING MAY 31, 2023 {STRATEGIC PLAN NO 5, 1) — Community Development Agency Workforce Development Board approved the recommended action on March 21, 2019 by a vote of 15-0 (Baetz, Luviano absent). MOTION: 1. Reappoint Ignacio Alegre, Bob Tucker, and Dennis Varnum to the Santa Ana Workforce Development Board for a four-year term expiring May 31, 2023; 2. Appoint Christine Snapper to the Workforce Development Board representing the County of Orange Social Services Agency (replacing Batez) for a full four-year term expiring May 31, 2023. 13F. COUNCIL COMMITTEES — AGENDA AND MINUTES {STRATEGIC PLAN NO. 5, 1) - Clerk of the Council Office MOTION: Receive and file. NAME MEETING DATE Economic Development Infrastructure, Budget 11/26/2018 and Technology Committee 3/11/2019 MISCELLANEOUS ADMINISTRATION 19A. CONFIRMATION OF CLOSED SESSION ACTION(S) — NONE. * MOTION TO CONSIDER ITEM 19B TAKEN OUT OF ORDER, AFTER DELIBERATION OF ITEM 25C. 19B. EXCUSED ABSENCES — Clerk of the Council Office MOTION: Excuse the absence of Mayor Pulido from the Open Regular Meeting of May 21, 2019. MOTION: Sarmiento SECOND: Iglesias VOTE: AYES: Iglesias, Penaloza, Sarmiento, Solorio, (4) NOES: None (0) ABSTAIN: None (0) ABSENT: Pulido, Villegas (2) * Ward 4 representative vacant. CITY COUNCIL MINUTES 11 MAY 21, 2019 1OA-11 Council discussion ensued: Councilmember Iglesias spoke. City Manager Kristine Ridge spoke and noted that various records identified in Resolution 2013-014 have different retention schedules. Councilmember Penaloza requested clarification on the definition of obsolete records. Councilmember Solorio, pointed out the cost of storage to maintain records and suggested updating retention policy along with criteria. MOTION: Approve the request for the destruction of obsolete records from the Community Development Agency in accordance with the retention schedule outlined in City Council Resolution 2013-014. The Citywide Records Retention Schedule has specific retention periods for many City documents. The Schedule is modeled after the California Secretary of State's sample for local government and incorporates other statutory periods applicable to Santa Ana. These are minimum retention periods. Each department makes discretionary decisions on whether to retain records past the minimum requirements. MOTION: Solorio SECOND: Penaloza VOTE: AYES: Iglesias, Penaloza, Solorio, Villegas (4) NOES: Sarmiento (1) ABSTAIN: None (0) ABSENT: Pulido(1) * Ward 4 representative vacant. 19D. RECEIVE AND FILE QUARTERLY REPORT FOR HOUSING DIVISION PROJECTS AND ACTIVITIES JANUARY— MARCH 2O19 {STRATEGIC PLAN NO. 5, 3C) — Community Development Agency Community Redevelopment and Housing Commission approved the recommended action on April 24, 2019 by a vote of 8-0 (Urzua absent). MOTION: Receive and file. CITY COUNCIL MINUTES 12 MAY 21, 2019 10A-12 19E. RECEIVE AND FILE REPORT ON WATER QUALITY (STRATEGIC PLAN NO. 5) — Public Works Agency Council discussion ensued: Councilmember Sarmiento spoke. Public Works Resources Manager Nabil Saba spoke. Councilmember Penaloza, directed City Manager to provide City Council with memo addressing cause of cloudy water. Public Works Resources Manager Nabil Saba spoke. Councilmember Iglesias spoke. Councilmember Sarmiento, directed staff to contact Orange County Water District (OCWD) and request a representative to address City Council and discuss water quality and supply. MOTION: Receive and file. MOTION: Sarmiento SECOND: Iglesias VOTE: AYES: Iglesias, Penaloza, Sarmiento, Solorio, Villegas (5) NOES: None (0) ABSTAIN: None (0) ABSENT: Pulido (1) * Ward 4 representative vacant. BUDGETARY MATTERS SPECIFICATIONS — PURCHASE OF EQUIPMENT AND SERVICES Council discussion ensued: Councilmember Iglesias spoke. CITY COUNCIL MINUTES 13 MAY 21, 2019 10A-13 City Manager Kristine Ridge spoke. Councilmember Solorio spoke. City Manager Kristine Ridge spoke. MOTION: Award a blanket order contract to Amazon Capital Services, Inc. for online marketplace purchase of goods for a one-year period expiring March 31, 2020, with provisions for four, one-year renewals exercisable by the City Manager, in an annual amount not to exceed $100,000, subject to non -substantive changes approved by the City Manager and City Attorney. MOTION: Solorio VOTE: AYES NOES ABSTAIN SECOND: Villegas Penaloza, Solorio, Villegas (3) Iglesias (1) None (0) ABSENT: Pulido, Sarmiento (2) * Ward 4 representative vacant. Motion failed. * CONSIDERATION TO RECONSIDER OCCURRED LATER IN THE MEETING AFTER DELIBERATION OF ITEM 23A. MOTION TO RECONSIDER: MOTION: Sarmiento SECOND: Solorio VOTE: AYES: Penaloza, Sarmiento, Solorio, Villegas (4) NOES: Iglesias (1) ABSTAIN: None (0) ABSENT: Pulido (1) * Ward 4 representative vacant. Additional Council discussion ensued: Councilmember Sarmiento spoke. City Manager Kristine Ridge spoke. CITY COUNCIL MINUTES 14 MAY 21, 2019 1 OA-14 MOTION: Award a blanket order contract to Amazon Capital Services, Inc. for online marketplace purchase of goods for a one-year period expiring March 31, 2020, with provisions for four, one-year renewals exercisable by the City Manager, in an annual amount not to exceed $100,000, subject to non -substantive changes approved by the City Manager and City Attorney. MOTION: Sarmiento SECOND: Solorio VOTE: AYES: Penaloza, Sarmiento, Solorio, Villegas (4) NOES: Iglesias (1) ABSTAIN: None (0) ABSENT: Pulido(1) Ward 4 representative vacant. PROJECTS/CHANGE ORDERS Council discussion ensued: Councilmember Penaloza spoke. City Manager Kristine Ridge spoke. Executive Director of Finance and Management Services Kathryn Downs spoke. Councilmember Penaloza conveyed request by many Madison Park residents asking for their concrete streets to be fixed. Councilmember Iglesias spoke. Executive Director of Public Works Agency Fuad Sweiss spoke. City Manager Kristine Ridge spoke. Councilmember Solorio, directed Public Works Agency to develop a plan to modernize concrete streets. Councilmember Sarmiento, requested staff to address Sandpoint street disrepair with any residual funds. Executive Director of Public Works Agency Fuad Sweiss spoke. CITY COUNCIL MINUTES 15 MAY 21, 2019 10A-15 Councilmember Penaloza, directed staff to include completion timeline for all future projects in staff reports. Executive Director of Public Works Agency Fuad Sweiss spoke. MOTION: Award a contract to EBS General Engineering, Inc., the lowest responsible bidder, in accordance with the base bid in the amount of $874,300, for construction of the Residential Street Repair Program and Alley Improvement Project, for the term beginning upon execution of the contract and ending upon project completion, and authorize the City Manager and the Clerk of the Council to execute the contract subject to non -substantive changes approved by the City Manager and the City Attorney. 2. Approve the Project Cost Analysis for a total estimated construction delivery cost of $1,092,874, which includes the $874,300 contract, $87,430 as a 10% project contingency, $59,000 for Contract Administration, and $72,144 for Inspection and Testing. The project will be paid by Community Development Block Grant and Measure M2 Local Fairshare funds. The budget is sufficient to cover the contract. MOTION: Penaloza SECOND: Sarmiento VOTE: AYES: Iglesias, Penaloza, , Sarmiento, Solorio, Villegas (5) NOES: None (0) ABSTAIN: None (0) ABSENT: Pulido(1) * Ward 4 representative vacant. *MOTION TO RECONSIDER ITEM 22A TAKEN AFTER DELIBERATION OF ITEM 23A. MOTION: Amend the Fiscal Year 2017-18 and 2018-19 Capital Improvement Programs by removing $200,000 in unspent Measure M2 Fairshare funding from the Traffic Signal Equipment Replacement (Project No. 18-6914) and reallocating the funds to Traffic Signal Operations (Project No. 19-6720). Council discussion ensued: MAY 21, 2019 CITY COUNCIL MINUTES 16 10A-16 Councilmember Penaloza spoke. Public Works Agency City Engineer William Galvez spoke. Councilmember Iglesias spoke. Public Works Agency City Engineer William Galvez spoke. MOTION: Solorio SECOND: Villegas VOTE: AYES: Penaloza, Sarmiento, Solorio, Villegas (4) NOES: Iglesias (1) ABSTAIN: None (0) ABSENT: Pulido (1) * Ward 4 representative vacant. AGREEMENTS Council discussion ensued: Councilmember Iglesias spoke. City Manager Kristine Ridge spoke. Public Works Agency Principal Civil Engineer Taig Higgins made a brief presentation. Public Works Agency City Engineer William Galvez spoke. Executive Director of Public Works Agency Fuad Sweiss spoke. Councilmember Penaloza spoke. City Manager Kristine Ridge spoke. Executive Director of Public Works Agency Fuad Sweiss spoke. Assistant City Attorney John Funk spoke. Councilmember Solorio spoke. CITY COUNCIL MINUTES 17 MAY 21, 2019 10A-17 Councilmember Penaloza spoke. Assistant City Attorney John Funk spoke. Councilmember Solorio spoke. Councilmember Sarmiento, called for the question and directed staff to ensure recovery of staff and attorney costs. Assistant City Attorney John Funk spoke. Mayor Pro Tern Villegas spoke. AMENDED MOTION: Approve with stipulation to ensure additional fees and costs are recovered; and authorize the City Manager and Clerk of the Council to execute a purchase and sale agreement with Eugen Charles Andres III and Ann Avery Andres, Trustees of the Andres 1986 Living Trust and Successor Trustees Thereto, for the sale of City -owned property located at 2501 North Flower Street (APN 002-020-37) in the amount of $4,000, subject to non -substantive changes approved by the City Manager and City Attorney. The revenue will be deposited into General Fund Sale of Land Revenue account. MOTION: Sarmiento VOTE: AYES: NOES: ABSTAIN: SECOND: Solorio Sarmiento, Solorio, Villegas (3) Penaloza (1) Iglesias (1) ABSENT: Pulido(1) * Ward 4 representative vacant. Motion failed. M Councilmember Penaloza, directed staff to provide City Council with assessment of value with added square footage and to setup appointment to view property. Councilmember Sarmiento withdrew his motion as maker of the motion Councilmember Solorio, directed staff to provide City Council with an analysis of the liability issues. Councilmember Sarmiento, withdrew original motion and motioned for a two week continuance. Councilmember Penaloza, requested a tour of the property. CITY COUNCIL MINUTES 18 MAY 21, 2019 1OA-18 AMENDED MOTION: Continue consideration of matter to two weeks. 25B. MOTION: Sarmiento SECOND: Solorio VOTE: AYES: Iglesias, Penaloza, Sarmiento, Solorio, Villegas (5) NOES: None (0) ABSTAIN: None (0) ABSENT: Pulido (1) * Ward 4 representative vacant APPROVE QUALIFIED CONSULTANTS TO PROVIDE ON -CALL ENVIRONMENTAL AND PLANNING SERVICES FOR CITY PLANNING PROJECTS AND SUPPLEMENTAL STAFF SERVICES FOR A TOTAL NOT TO EXCEED $1,400,000 {STRATEGIC PLAN NO. 3, 3) — Planning and Building Agency MOTION: Authorize the City Manager and Clerk of the Council to execute agreements approved as to form by the City Attorney's Office to engage each of the 31 environmental and planning services firms listed below as - needed for a period of two years ending May 21, 2021, to provide on -call environmental, technical and planning services for the Planning & Building Agency at the fees set forth in their responses to Request for Qualifications No. 17-043. The total allocation for the requested services is not to exceed $1,400,000, subject to non -substantive changes by the City Manager and City Attorney (AGMT. No. 2019-073). 1. AECOM Technical Services, Inc. 2. Annealta Group 3. Architectural Resources Group, Inc. 4. CAA Planning, Inc. 5. Chamber Group Inc. 6. Circlepoint 7. CSG Consultants, Inc. 8. De Novo Planning Group 9. Dudek 10. ECORP Consulting, Inc. 11.Environmental Science Associates (ESA) 12. Environment Planning Development Solutions, Inc. (EPD Solutions, Inc.) 13.Evan Brooks Associates 14. FCS International, Inc. (FirstCarbon Solutions) 15.Greenwood and Associates 16.Helix Environmental Planning, Inc. 17.ICF Jones & Stokes, Inc. (ICF) 18.Infrastructure Engineering Corporation (IEC) 19.Kimley Horn and Associates, Inc. CITY COUNCIL MINUTES 19 MAY 21, 2019 10A-19 20. LSA Associates, Inc. 21. Michael Baker International 22.Moore, lacofano, Goltsman, Inc. (MIG) 23.Phil Martin & Associates, Inc. 24.PlaceWorks, Inc. 25. Renee Escario DBA RE Consulting 26. Rincon Consultants, Inc. 27.Sagecrest Planning and Environmental, LLC 28.T & B Planning, Inc. 29.UltraSystems Environmental Inc. 30.Urban Crossroads, Inc. 31.Veneklasen Associates, Inc. MOTION: Authorize the City Manager and Clerk of the Council to execute an amendment to the agreement with Video Engineering Services by increasing the not -to -exceed amount by $15,000 for the current term (ending June 30, 2019) and exercise the last optional one-year extension ending June 30, 2020, which will include an increase of $15,000 for an amount not to exceed $80,875 for each of the terms and a total agreement of $359,375 to provide video production and consulting services, the recommended increases will be paid from the General Fund, subject to non -substantive changes approved by the City Manager and City Attorney (AGMT. No. 2019- 074). Council discussion ensued: Councilmember Iglesias spoke. City Manager Kristine Ridge spoke. Councilmember Penaloza spoke. Councilmember Iglesias spoke. City Manager Kristine Ridge spoke. Councilmember Solorio spoke. MOTION: Solorio SECOND: Penaloza VOTE: AYES: Iglesias, Penaloza, Sarmiento, Solorio, (4) NOES: None (0) ABSTAIN: None (0) ABSENT: Pulido, Villegas (2) * Ward 4 representative vacant. CITY COUNCIL MINUTES 20 MAY 21, 2019 1 OA-20 *MOTION TO CONSIDER ITEM 19B TAKEN AFTER DELIBERATION OF ITEM 25C, 25D. AMEND COOPERATIVE AGREEMENT TO EXTEND TERM WITH ORANGE COUNTY TRANSPORTATION AUTHORITY FOR WESTMINSTER AVENUE/17TH STREET CORRIDOR TRAFFIC SIGNAL SYNCHRONIZATION PROJECT (PROJECT NO. 16-6869) (STRATEGIC PLAN NO. 6, 1 B) — Public Works Agency MOTION: Authorize the City Manager and Clerk of the Council to execute the First Amendment of the Cooperative Agreement C-5-3589 with Orange County Transportation Authority (OCTA) for the Westminster Avenue/17th Street Traffic Signal Synchronization Project, to extend the term of the agreement for an additional period of thirty-one (31) months through December 31, 2021, subject to non -substantive changes approved by the City Manager and City Attorney (AGMT. No. 2019-075). 25E. AMEND COOPERATIVE AGREEMENT TO EXTEND TERM WITH ORANGE COUNTY TRANSPORTATION AUTHORITY FOR BRISTOL STREET TRAFFIC SIGNAL SYNCHRONIZATION PROJECT (PROJECT NO. 15-6829) {STRATEGIC PLAN NO. 6, 1 B) - Public Works Agency MOTION: Authorize the City Manager and Clerk of the Council to execute Amendment No. 2 of the cooperative agreement C-4-1882 with Orange County Transportation Authority (OCTA) for the Bristol Street Traffic Signal Synchronization Project, to extend the term of the agreement for an additional period of twelve (12) months through May 31, 2020, subject to non -substantive changes approved by the City Manager and City Attorney (AGMT. No. 2019-076). 25F. APPROVE A TWO-YEAR LICENSE AGREEMENT WITH AN AUTOMATIC MONTHLY RENEWAL FOR AN ADDITIONAL THREE YEARS FOR $561,200 WITH DYER BUSINESS PARK, LLC FOR THEIR USE OF REAL PROPERTY OWNED BY THE CITY AT THE EASTERN TERMINUS OF EAST ALTON AVENUE / SOUTH STANDARD AVENUE PARCEL {STRATEGIC PLAN NO. 3) — Public Works Agency MOTION: Authorize the City Manager and Clerk of the Council to execute a license agreement with Dyer Business Park, LLC, for a monthly license fee of $9,200, for use of real property owned by the City at the eastern terminus of Alton Avenue between Standard Avenue and the SR-55 Freeway, for a two-year term commencing on May 22, 2019, and expiring May 21, 2021, which will automatically renew month to month thereafter for an additional three years, for a maximum of $561,200, subject to nonsubstantive changes approved by the City Manager and City Attorney. The revenue will be deposited into the Select Street Construction — Gas Tax, Rental of Property revenue account (AGMT. No. 2019-077). CITY COUNCIL MINUTES 21 MAY 21, 2019 1 OA-21 25G. APPROVE FIRST AMENDMENT TO AGREEMENT WITH LIEBERT CASSIDY WHITMORE INCREASING CONTRACT COST BY $10,000; AGGREGATE COST IS $120,000 FOR LABOR CONTRACT NEGOTIATION ASSISTANCE AND LEGAL CONSULTATION SERVICES {STRATEGIC PLAN NO. 7; 4, 6, & 7) - Human Resources Department MOTION. Authorize the City Manager and Clerk of the Council to execute a first amendment to the agreement entered into on March 5, 2019 between the City of Santa Ana and Liebert Cassidy Whitmore (LCW) for special legal counsel services for labor contract negotiation assistance and legal consultation services. This first amendment reflects a change in the LCW Partner hourly billing rate from $350 per hour to $370 per hour effective July 1, 2019, and adds $10,000 to the not to exceed amount of the agreement for a total aggregate amount of $120,000 to cover the costs associated with the increased rates; subject to non -substantive changes approved by the City Manager and City Attorney. The General Fund will pay for the additional $10,000 (AGMT. No. 2019-078). **END OF CONSENT CALENDAR** OATH OF OFFICE TO THE NEWLY APPOINTED COMMISSIONERS ADMINISTERED EARLIER IN THE MEETING. BUSINESS CALENDAR ITEMS ADMINISTRATIVE MATTERS - BUSINESS 60A. APPROVE A DENSITY BONUS AGREEMENT TO ALLOW A 552 UNIT AFFORDABLE RENTAL PROJECT AT 2110, 2114, AND 2020 EAST FIRST STREET (STRATEGIC PLAN NOS. 3, 2; 5, 3) — Community Development Agency; and Planning and Building Agency Continued from the May 7, 2019 City Council meeting by a vote of 6-0. Planning Commission approved recommended action on June 4, 2018 by a vote of 4-1 (Bacerra dissented). Council discussion ensued: Councilmember Sarmiento spoke. CITY COUNCIL MINUTES 22 MAY 21, 2019 1 OA-22 City Manager Kristine Ridge spoke. Councilmember Solorio, unsupportive of item as presented and request a two - week consideration. Applicant Laura Archuleta, President and Chief Executive Officer of Jamboree Housing addressed the Council. Councilmember Penaloza spoke. Executive Director of Planning and Building Agency Minh Thai spoke. Councilmember Sarmiento seconded the motion to continue item. Requested from Assistant City Attorney John Funk to speak regarding Council's scope and authority as a governing body once this item has already been before the Planning Commission. Assistant City Attorney John Funk addressed council. Councilmember Iglesias spoke. Assistant City Attorney John Funk spoke. Councilmember Solorio, requested staff to provide parking plan. Unsupportive of item as presented and request a two -week consideration. Councilmember Penaloza spoke. Applicant Laura Archuleta, President and Chief Executive Officer of Jamboree Housing spoke. AMENDED MOTION: Continue consideration of matter to two weeks. MOTION: Solorio SECOND: Sarmiento VOTE: AYES: Iglesias, Penaloza, Sarmiento, Villegas(5) NOES: None (0) ABSTAIN: None (0) ABSENT: Pulido(1) Ward 4 representative vacant. Solorio, CITY COUNCIL MINUTES 23 MAY 21, 2019 1 OA-23 60B. APPROVE SECOND AMENDMENT TO THE AGREEMENT WITH ALLIED UNIVERSAL SECURITY SERVICES FOR UNARMED SECURITY GUARD SERVICES AND INCREASE CONTRACT AMOUNT BY $53,428 TO PROVIDE SERVICES AT THE SANTA ANA WORK CENTER LOCATED AT 801 W. CIVIC CENTER DRIVE (PARTIALLY GRANT FUNDED) {STRATEGIC PLAN NO. 6, 1 C} - Community Development Agency Continued from the May 7, 2019 City Council meeting by a vote of 5-0 (Villegas absent). Council discussion ensued: Councilmember Solorio spoke. Councilmember Iglesias spoke. Community Development Agency Economic Development Specialist Carlos De La Riva spoke. City Manager Kristine Ridge spoke. MOTION: Authorize the City Manager and Clerk of the Council to execute a second amendment to the agreement with Allied Universal Security Services to increase the contractual amount by a total of $53,428 not to exceed a total annual compensation of $1,225,215 to perform unarmed security guard services at various City locations, for a three-year period beginning June 1, 2017, and expiring May 31, 2020, subject to non - substantive changes approved by the City Manager and City Attorney (AGMT. No. 2019-079). MOTION: Solorio SECOND: Sarmiento VOTE: AYES: Iglesias, Penaloza, Sarmiento, Villegas(5) NOES: None (0) ABSTAIN: None (0) ABSENT: Pulido(1) * Ward 4 representative vacant. REPORTS ITEM 65A CONSIDERED EARLIER IN MEETING. Solorio, CITY COUNCIL MINUTES 24 MAY 21, 2019 1 OA-24 65B. SELECT AND APPOINT REPRESENTATIVES TO THE ORANGE COUNTY SANITATION DISTRICT {STRATEGIC PLAN NO. 5, 1) — Clerk of the Council Office Council discussion ensued: Councilmember Iglesias expressed to be the primary representative. Councilmember Penaloza expressed to be the alternate representative. MOTION: Appoint Councilmember Iglesias as the primary and Councilmember Penaloza as the alternate representative to serve on the Orange County Sanitation District Board, MOTION: Sarmiento SECOND: Solorio VOTE: AYES: Iglesias, Penaloza, Sarmiento, Solorio, Villegas (5) NOES: None (0) ABSTAIN: None (0) ABSENT: Pulido (1) * Ward 4 representative vacant. COUNCIL AGENDA ITEMS Pursuant to Santa Ana Charter Section 411, any member of the City Council may place items on the City Council Agenda to be considered by the City Council. 85A. DISCUSS AND CONSIDER DIRECTING CITY MANAGER TO REQUEST STAFF TO SEND A LETTER IN OPPOSITION OF SENATE BILL 50 (SB50) AUTHORED BY STATE SENATOR WIENER, THAT WOULD REQUIRE LOCAL GOVERNMENTS TO PROVIDE A SPECIFIED "EQUITABLE COMMUNITIES INCENTIVE" TO DEVELOPERS THAT CONSTRUCT RESIDENTIAL DEVELOPMENTS IN "JOBS -RICH" AND "TRANSIT -RICH" AREAS, WHICH MAY INCLUDE CERTAIN EXCEPTIONS TO SPECIFIED REQUIREMENTS FOR ZONING, DENSITY, PARKING, HEIGHT RESTRICTIONS, AND FLOOR AREA RATIOS — Councilmember Iglesias The following spoke on the matter: Dale Helvig, supportive of item. Council discussion ensued: Councilmember Iglesias spoke. CITY COUNCIL MINUTES 25 MAY 21, 2019 1 OA-25 Councilmember Solorio spoke. Councilmember Sarmiento abstained. MOTION: Direct City Manager to request staff to send a letter in opposition of Senate Bill 50 (SB50). MOTION: Iglesias SECOND: Penaloza VOTE: AYES: Iglesias, Penaloza, Solorio, Villegas (4) NOES: None (0) ABSTAIN: Sarmiento (1) ABSENT: Pulido(1) * Ward 4 representative vacant. 85B. DISCUSS AND CONSIDER DIRECTING CITY MANAGER TO REQUEST STAFF TO DRAFT A RESOLUTION IN SUPPORT OF H.R. 763, THE ENERGY AND CARBON DIVIDEND ACT OF 2019, WHICH AIMS TO REDUCE U.S. CARBON POLLUTION BY 33 PERCENT IN 10 YEARS BELOW 2015 LEVELS — Councilmember Sarmiento The following spoke on the matter: • Virginia Bernal, supportive of H.R. 763. Suman Bhasin, supportive of H.R. 763. Kayleigh Levitt, supportive of H.R. 763. Council discussion ensued: Councilmember Sarmiento, directed staff to draft a resolution to present to City Council for consideration in two weeks. Councilmember Iglesias, unsupportive of item as presented. City Manager Kristine Ridge conveyed a motion is not required only direction to return to council with resolution for council consideration. Councilmember Solorio, supportive of further discussion. Expressed support to prepare a resolution and a letter. Councilmember Sarmiento, amended request to direct staff to prepare letter and resolution. CITY COUNCIL MINUTES 26 MAY 21, 2019 1 OA-26 Councilmember Penaloza spoke, supportive of direction. 85C. DISCUSS AND DIRECT STAFF, AS APPROPRIATE, TO USE MEASURE X FUNDS TO EXPAND CITY'S CURRENT CONTRACT WITH ALLIED UNIVERSAL SECURITY SERVICES TO QUICKLY AND COST-EFFECTIVELY BEGIN PROVIDING SECURITY SERVICES AT FIVE PARKS IN EACH WARD, PLUS SANTIAGO CREEK, DEDICATED BIKE TRAILS OWNED BY THE CITY OF SANTA ANA, AND ADDITIONAL COVERAGE AT CENTENNIAL PARK. UNTIL THE CITY IS ABLE TO DEVELOP A SUSTAINABLE PARK RANGER PROGRAM, THESE EXPANDED SERVICES WOULD ALLOW US TO ADDRESS INCREASING CONCERNS FROM RESIDENTS AND NEIGHBORHOOD LEADERS REGARDING HOMELESS ENCAMPMENTS, TRASH, GRAFFITI, DRUG USE AND RELATED PUBLIC SAFETY CONCERNS — Councilmember Solorio Council discussion ensued: Councilmember Solorio, supportive of prioritization homeless services and identification of five high -risk parks in each ward in addition to other City assets. Councilmember Iglesias, supportive of moving forward with a Request for Proposal (RFP) process. City Manager Kristine Ridge spoke regarding contracting security at parks. Councilmember Solorio, unsupportive of an RFP process. Councilmember Iglesias spoke. City Manager Kristine Ridge spoke regarding an expedited RFP process. Councilmember Solorio, requested staff to return to council with a timeline on the RFP process. Mayor Pro Tern Villegas spoke. Councilmember Penaloza, directed staff to provide additional options in choosing security services and consider having security guards wear uniform displaying City logo and badge. City Manager Kristine Ridge spoke. COUNCIL RECESSED AT 11:02 P.M. and RECONVENED AT 11:17 P.M. with the same members present. CITY COUNCIL MINUTES 27 MAY 21, 2019 1 OA-27 WORK STUDY SESSION WS. FISCAL YEAR 2019-20 PROPOSED BUDGET; MISCELLANEOUS FEES; CAPITAL IMPROVEMENT PROGRAM; AND STRATEGIC PLAN UPDATE PRESENTATION — Finance and Management Services Agency City Manager Kristine Ridge introduced the work study session. Executive Director of Finance and Management Services Kathryn Downs provided a PowerPoint presentation. Each City Executive Director spoke in respect to their agency's budget. Council discussion ensued: City Manager Kristine Ridge introduced the work study session. Executive Director of Finance and Management Services Kathryn Downs conducted presentation to City Council. Executive Director of Public Works Fuad Sweiss conducted presentation to City Council. Councilmember Iglesias spoke. Expressed concern as to the manner in which the budget has been presented to City Council. Requested unfunded liability to be more clearly identified in all future presentations. Executive Director of Finance and Management Services Downs spoke. City Manager Kristine Ridge spoke. Councilmember Solorio, requested staff to focus on quality of life and safety projects by ward. Directed City Manager to have each department prepare a proposal as to how utilize Measure X funds to address homeless services and improved service call response times. Supportive of increasing number of certified librarians rather than creating a new department or executive director position, and to focus on parks, community safety, infrastructure, and youth services. Executive Director of Finance and Management Services Downs spoke. Councilmember Sarmiento spoke. Directed staff to provide update on the City reserves at the next City Council meeting. Supportive of providing equipment, training, and counseling to police officers to reduce liability claims against the City. CITY COUNCIL MINUTES 28 MAY 21, 2019 1 OA-28 Directed staff to provide City Council with amounts paid to resolve litigation and payouts as a result of liability claims filed against the police department. City Manager Kristine Ridge spoke. Executive Director of Finance and Management Services Downs spoke. Councilmember Iglesias, supportive of increasing library and parks and recreation staff. Unsupportive of adding additional support staff to police department. Executive Director of Finance and Management Services Downs spoke. Police Administrative Manager Robert Carroll spoke. City Manager Kristine Ridge spoke. Councilmember Penaloza, unsupportive of adding graphic designer position to police department. Councilmember Solorio, supportive of maintaining current police staffing level with conditional additions based on positions filled and suggested hiring Police Service Officers (PSO) as an alternative to hiring a sworn officer. Councilmember Penaloza, supportive of dedicating a code enforcement officer and staff member to assist in prioritizing the cannabis industry. City Manager Kristine Ridge spoke. Executive Director of Finance and Management Services Downs spoke. Councilmember Iglesias spoke. Requested staff to provide City Council with a detailed accounting of the $4.3 million police budget savings calculations and funding origination. Executive Director of Finance and Management Services Downs spoke. City Manager Kristine Ridge spoke Councilmember Solorio, supportive of appointing staff to expand cannabis industry. Mayor Pro Tern Villegas, noted previous advisement by Executive Director of Finance of Management Services Downs that the City could not afford the police officer Memorandum of Understanding (MOU). Directed staff to provide in writing how the police department is now within their budget. Executive Director of Finance and Management Services Downs spoke Executive Director of Human Resources Steven Pham spoke. CITY COUNCIL MINUTES 29 MAY 21, 2019 1 OA-29 COMMENTS PUBLIC COMMENTS (Non-Agendized Items). Carlo Bonanni, expressed support for additional Park Rangers. • Peter Katz, noted Santa Anita neighborhood took second place award as the Most Improved Neighborhood in the Nation at the Neighborhood USA (NUSA) convention. • Irma Macias, expressed support towards building safe communities. 90A. CITY MANAGER'S COMMENTS i City Manager Ridge, noted 2020 Census outreach efforts. 90B. CITY COUNCILMEMBER COMMENTS Councilmember Solorio, noted positive attendance at Santa Ana Zoo and provided status of railroad enforcement efforts. Councilmember Penaloza, reported on attendance at Santa Ana Police officer swearing in ceremony. Directed staff to meet deadline commitments presented to City Council. Requested staff to focus on developing cannabis industry. Councilmember Iglesias, reported on attendance at Windsor Village Neighborhood Association meeting, attendance at the May 8, 2019 Orange County Sanitation Administration Committee meeting, attendance at the May 18, 2019 Economic Development, Infrastructure, Budget and Technology Committee (EDIBT) meeting. Directed City Manager to implement voting board at future City Council meetings for transparency purposes. Directed staff to provide update on status of camera system installation at Windsor Park and remaining five parks. Requested staff to address fallen wall near Memorial Park Neighborhood. City Manager Kristine Ridge spoke. Acting Clerk of the Council Norma Mitre spoke. Councilmember Penaloza, supportive of implementing a voting system at all future City Council meetings. CITY COUNCIL MINUTES 30 MAY 21, 2019 1 OA-30 Councilmember Sarmiento, requested City Council to be respectful of the publics time and limit comments in a responsible manner. ADJOURNED- May 22, 2019 at 1:06 A.M. - The next meeting of the City Council is scheduled for Tuesday, June 4, 2019 at 5:00 p.m. for the Closed Session Meeting immediately followed by the Regular Open Business Meeting at 5:45 p.m. in the Council Chamber, 22 Civic Center Plaza, Santa Ana, California. Norma Mitre, Acting Clerk of the Council FUTURE AGENDA ITEMS • CONSIDERATION OF SEVENTEENTH AND TUSTIN ANNEXATION • GENERAL PLAN UPDATE • FISCAL YEAR 2019-2020 BUDGET • 2019-2020 CDBG FUNDING AND THE ANNUAL ACTION PLAN • COMMERCIAL CANNABIS VERTICAL INTEGRATION AND SECURITY DEPOSIT AMENDMENTS • CITY'S 150TH ANNIVERSARY PLANNING • MAIN PLACE MALL TRANSFORMATION AND EXPANSION CITY COUNCIL MINUTES 31 MAY 21, 2019 1 OA-31 1 OA-32 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JUNE 18, 2019 TITLE: ORDINANCE SECOND READING: APPROVING AMENDMENT APPLICATION NO.2018-04 TO ESTABLISH THE MAINPLACE SPECIFIC PLAN (STRATEGIC PLAN NO. 5,1) T CITY MANAGER RECOMMENDED ACTION Place ordinance on second reading and adopt. DISCUSSION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ ordinance on 1 81 Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER On June 4, 2019, the following ordinance was introduced for first reading and City Council authorized publication of title by a vote of 4-2 (Sarmiento and Solorio dissented): ORDINANCE NO. NS-2966 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING AMENDMENT APPLICATION NO. 2018-04 FOR THE MAINPLACE MALL SPECIFIC PLAN FOR THE PROPERTY LOCATED AT 2800 NORTH MAIN STREET In summary, the Ordinance (Exhibit 1) changes the zoning designation of the MainPlace Mall site at 2800 North Main Street from General Commercial to Specific Plan No. 4, facilitating the development of up to 1,900 residential units, 750,000 square feet of office space, approximately 1.4 million square feet of commercial space, and 400 hotel rooms. In tandem with this application, MainPlace Shoppingtown, LLC has requested approval of a development agreement (DA) with the City of Santa Ana. In addition to approving the ordinance at first reading, the City Council approved conforming edits to the conditions of approval for the project's tentative parcel map (TPM No. 2018-02) for consistency with the DA. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #5 - Community Health, Livability, Engagement & Sustainability, Objective #1 (Establish a comprehensive community engagement initiative to expand access to information and create opportunities for stakeholders to play an active role in discussing public policy and setting priorities). 11 A-1 Second Reading Ordinance: Amendment Application No. 2018-04 June 18, 2019 Page 2 FISCAL IMPACT There is no fiscal impact associated with this action. Norma Mitre Acting Clerk of the Council Exhibit: 1. Ordinance No. NS-2966 11 A-2 EXHIBIT 1 LS 6.4.19 CITY COUNCIL ORDINANCE NO. NS-XXXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING AMENDMENT APPLICATION NO. 2018-04 FOR THE MAINPLACE MALL SPECIFIC PLAN FOR THE PROPERTY LOCATED AT 2800 NORTH MAIN STREET WHEREAS, the City of Santa Ana ("City") is authorized pursuant to Government Code Sections 65450 through 65457 and the Santa Ana City Charter to adopt specific plans to implement its General Plan by acting as statements of planning policy that refine the general plan policies applicable to a defined area, by directly regulating land use, or by bringing together detailed policies and regulations into a focused development scheme; and WHEREAS, applicant MainPlace Shoppingtown, LLC ("Developer') proposes the MainPlace Mall Transformation Project ("MainPlace Project") at 2800 N. Main Street ('Property') in the City, more particularly described in Exhibit A, attached hereto and incorporated herein by this reference; and WHEREAS, the Property is an approximately 49-acre property and the current site of the existing MainPlace Mall, an enclosed 2- to 3-story shopping center with approximately 1,130,000 square feet of commercial uses; and WHEREAS, the MainPlace Project seeks to revitalize the existing MainPlace Mall to adapt to changing market conditions, facilitate private investment, and provide a long- term development plan for the Property; and WHEREAS, the MainPlace Project proposes a full buildout at the Property of 1,400,000 square feet of commercial, 750,000 square feet of office, 400 hotel rooms, and 1,900 residential units; and WHEREAS, the entitlements sought for the MainPlace Project include adoption of a Specific Plan (Specific Plan No. 4) approval of a Tentative Parcel Map (Tentative Parcel Map. 2018-01), and approval of a Development Agreement (Development Agreement No. 2018-02); and WHEREAS, the General Plan land use designation for the Property is District Center and zoning for the Property is General Commercial (C2); and WHEREAS, the proposed MainPlace Mall Specific Plan ("Specific Plan"), attached hereto and incorporated herein as Exhibit B, would regulate and guide land development, design, as well as plan administration and implementation for the Property and the MainPlace Project; and 55394.00053\32005777.1 11 A-3 WHEREAS, pursuant to SIB 18, which requires local governments to consult with California Native American Tribes before adopting or amending a specific plan, the City contacted the Native American Heritage Commission (NAHC) to request a list of tribes that should be consulted about the MainPlace Project, and NAHC provided a list of six tribes; and WHEREAS, on January 28, 2019, the City formally invited the six Native American Tribes identified by NAHC (Juaneno Band of Mission Indians Acjachemen Nation, Gabrielino-Tongva Tribe, Gabrielino Tongva Indians of California Tribal Council, Gabrielino/Tongva Nation, Gabrieleno/Tongva San Gabriel Band of Mission Indians, and Gabrieleno Band of Mission Indians —Kizh Nation) to consult and none responded requesting consultation; and WHEREAS, the Specific Plan came before the Planning Commission for a duly noticed public hearing on May 13, 2019. At that hearing, the Planning Commission recommended that the City Council approve said Specific Plan; and WHEREAS, the Specific Plan came before the City Council for a duly noticed public hearing on June 4, 2019. WHEREAS, the City Council has determined that by adopting the Specific Plan, the City will promote orderly growth and quality development on the Property in accordance with the goals and policies set forth in the General Plan; and WHEREAS, the physical effects, if any, of the MainPlace Project and this Development Agreement have been analyzed pursuant to California Environmental Quality Act ("CEQA") (Pub. Resources Code section 21000 et seq.) in the certified Final Environmental Impact for the Fashion Square Commercial Center Project ("1983 EIR'), Addendum ER 96-033 to that 1983 EIR ("1996 Addendum), and the MainPlace Mall Transformation Project EIR Addendum ("2019 Addendum), and together these documents contain a complete and accurate reporting of all of the potential environmental impacts associated with the MainPlace Project. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: SECTION 1. CEQA. The City Council of the City of Santa Ana hereby finds, determines, and declares as follows: Based on the substantial evidence set forth in the record, including but not limited to the 1983 EIR, the 1996 Addendum, and the 2019 Addendum, the City Council finds that an addendum is the appropriate document for disclosing the changes to the MainPlace Mall Property, and that none of the conditions identified in Public Resources Code section 21166 and State CEQA Guidelines section 15162 requiring subsequent environmental review have occurred, because: 55394.00053\32005777.1 11 A-4 A. The MainPlace Project does not constitute a substantial change that would require major revisions of the 1983 EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects. B. There Is not a substantial change with respect to the circumstances under which the MainPlace Project will be developed that would require major revisions of the 1983 EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of the previously identified significant effects. C. New information of substantial importance has not been presented that was not known and could not have been known with the exercise of reasonable diligence at the time the 1983 EIR was certified or adopted, showing any of the following: (i) that the modifications would have one or more significant effects not discussed in the earlier environmental documentation; (ii) that significant effects previously examined would be substantially more severe than shown in the earlier environmental documentation; (III) that mitigation measures or alternatives previously found not to be feasible would in fact be feasible and would substantially reduce one or.more significant effects, but the applicant declined to adopt such measures; or (iv) that mitigation measures or alternatives considerably different from those analyzed previously would substantially reduce one or more significant effects on the environment, but which the applicant declined to adopt. SECTION 2. GENERAL PLAN CONSISTENCY. Based on the entire record before the City Council, including all written and oral evidence presented to the City Council, the City Council hereby finds that the Specific Plan is compatible with the objectives, policies, and general plan land use programs specified in the General Plan for the City of Santa Ana in that: A. The City of Santa Ana has officially adopted a General Plan. B. The land uses and development authorized by the Specific Plan, and the Specific Plan itself, are compatible with the objectives, policies, general land uses, and programs specified in the General Plan, for the following reasons: 1. The existing General Plan land use designation for the Property is District Center —intended to serve as an anchor to the City's commercial corridors, and to accommodate major development activity. District Centers are to be developed with an urban character that includes a mixture of high-rise office, commercial, 55344.00053132005777.1 11 A-5 and residential uses which provide shopping, business, cultural, education, recreation, entertainment, and housing opportunities. 2. The proposed project will support several goals and policies of the General Plan, including: a. Housing Element (HE) Goal 2: Create diversity of quality housing, affordability levels, and living experiences that accommodate Santa Ana's residents and workforce of all household types, Income levels, and age groups to foster an inclusive community. b. HE Policy 2.2: Create high intensity, mixed -use urban villages and pedestrian -oriented experiences that support the mid- to high-rise office centers, commercial activity, and cultural activities in the varied District Centers. C. HE Policy 4.4: Provide adequate rental and ownership housing opportunities and supportive services. d. Land Use (LU) Element Goal 1: Promote a balance of land uses to address basic community needs. e. LU Policy 1.2: Maintain and foster a variety of residential land uses in the City. f. LU Policy 4.3: Support land uses which provide community and regional economic and service benefits. g. LU Policy 4.4: Encourage the development of projects which promote the City's image as a regional activity center. h. LU Policy 5.5: Encourage development which is compatible with, and supportive of surrounding land uses. i. LU Policy 5.7: Anticipate that the intensity of new development will not exceed available infrastructure capacity. Land Use (LU) Element Goal 6: Reduce residential overcrowding to promote public health and safety. k. Urban Design (UD) Element Goal 1: Improve the physical appearance of the City through development of districts that project a sense of place, positive community image, and quality environment. 55394.00053k31005777.1 11 A-6 LID Policy 1.1: New development and redevelopment must have the highest quality design, materials, finishes and construction. C. The proposed Specific Plan will not adversely affect the public health, safety, and welfare in that the Specific Plan will not result in incompatible land uses on adjacent properties, inconsistencies with any General Plan goals or policies, or adverse impacts to the environment. SECTION 3. EFFECTIVENESS. The Specific Plan shall not be effective unless and until the following is adopted and become effective: Resolution No. 2019-xx (2019 Addendum). If the approvals and the Specific Plan are for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, or otherwise does not go into effect for any reason, then the Specific Plan shall be null and void and have no further force and effect. SECTION 4. INDEMNIFICATION. The Developer shall indemnify, protect, defend and hold the City and/or any of its officials, officers, employees, agents, departments, agencies, authorized volunteers, and instrumentalities thereof, harmless from any and all claims, demands, lawsuits, writs of mandamus, and other and proceedings (whether legal, equitable, declaratory, administrative or adjudicatory in nature), and alternative dispute resolution procedures (Including, but not limited to arbitrations, mediations, and such other procedures), judgments, orders, and decisions (collectively "Actions"), brought against the City and/or any of its officials, officers, employees, agents, departments, agencies, and instrumentalities thereof, that challenge, attack, or seek to modify, set aside, void, or annul, any action of, or any permit or approval issued by the City and/or any of its officials, officers, employees, agents, departments, agencies, and instrumentalities thereof (including actions approved by the voters of the City) for or concerning the Project, whether such Actions are brought under the Ralph M. Brown Act, California Environmental Quality Act, the Planning and Zoning Law, the Subdivision Map Act, Code of Civil Procedure sections 1085 or 1094.5, or any other federal, state or local constitution, statute, law, ordinance, charter, rule, regulation, or any decision of a court of competent jurisdiction. It is expressly agreed that the City shall have the right to approve, which approval will not be unreasonably withheld, the legal counsel providing the City's defense, and that Developer shall reimburse the City for any costs and expenses directly and necessarily incurred by the City in the course of the defense. City shall promptly notify the Developer of any Action brought and City shall cooperate with Developer in the defense of the Action. SECTION 5. CITY COUNCIL ACTION. The City Council hereby approves the MainPlace Mall Specific Plan, attached hereto and incorporated herein as Exhibit B, and which shall not take effect unless and until the 2019 Addendum is certified by the City Council. SECTION 6. PUBLICATION. The Clerk of the Council shall certify to the adoption of this ordinance and cause the same to be published in the manner 55394.00053 V 2005777.1 11 A-7 prescribed by law. ADOPTED this 4�h day of June, 2019. AYES: Councilmembers: NOES: Councilmembers: ABSTAIN: Councilmembers: NOT PRESENT: Councilmembers: Miguel A. Pulido Mayor APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: r /? Lisa Storck, Assistant City Attorney CERTIFICATE OF ATTESTATION AND ORIGINALITY I, NORMA MITRE, Acting Clerk of the Council, do hereby attest to and certify that the attached Ordinance No. NS-XXXX to be the original ordinance adopted by the City Council of the City of Santa Ana on , 2019, and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: Acting Clerk of the Council City of Santa Ana 55394.00053\32005777.1 11 A-8 PROJECT SITE 55394.01)051U2005777.1 11 A-9 ti a 0 0 0 0 m apt y r _I� t ItT,. r G/ L a C rl � S' a U v Q NO TH v? N N oo GVOH AHINnoD oNV NMOI w Manli� � w � y li 3AIN03DVldNIVN 3NVIAHON3N LL 11A-10 _.._.._.._.._. i i TOM AND COUNTRY RD q SPI.XUII j I RI ¢c f Rt 5au F RI M 0.1 aces � o .. x.M • 2 Sill RI O RI l O b uvUu �r'f RI IRuolNrcf W —Jl � I 1� M - w..xr,R • s Axo 0 RI o 0 —_ qWf M.f 1• RI CLNDII of R2 R2 RE 7C)N1KI 3 r'jIRTP]rTS R1 tl. Rf C, x ,} L o, •R1 YWx.vfn.v Mill f1 tL a R I 5 S 6.rn RS In In N v ~�. Al YRR4Y C, „ uv wmAl _ RI .RI -: RIRf,RpTr9r 8 '' = 2 EcnwfxoR.i R, O uRR Rt# C, io"A j �• R �Cxefn„ � R1 I5 Y,clNww Al I Rt tl•F� I YYi,CW,µ R1 AI GENERAL AGRICULTURAL CSM SOUTH MAN STREET COMMERCIAL DIST. R2 PAD-FAMLYRESDENCE -B PARKING MODIFICATION CI COMMUNITY COMMERCIAL GC GOVERNMENT CENTER R7 MULTIP LE- FAMILY RESIDENCE -OZ OVERLAYZONE Cl MD COMMIUNRY COMMERCIAL MUSEUM DIST. MI LIGHT INDUSTRIAL RI SUBURBANAPARTMENT -PRO PLANNEDRESDENTIAL C2 GENERAL COMMERCIAL M2 HEAVY NDUSTRIAL RE RESIDENTIAL ESTATE DEVELOPMENT GN PLANNED SHOPPING CENTER O OPENSPACE SO SPECIFIC DEVELOPMENT -HD2 HEDHT DISTRICT CS ARTERIAL COMMERCIAL P PROFESSIONAL SP SPECIFIC -PLAN CR COMMERCIAL RESIDENTIAL RI SINGLE- FAMILY RESIDENCE OZI METRO EASTOVERLAY ZONE SECTIONAL DISTRICT MAP: 31-4-9WA e CITY OF SANTA ANA. CALIFORNIA Exhibit. 11A-11 EXHIBIT B MAINPLACE MALL SPECIFIC PLAN The MainPlace Mall Transformation Project Specific Plan (SP-4) is available online at: htti)s://www santa-ana org/pb/planning-division/major-planning-proiects-and- docu m ents/m ain-Dlace-ma II-tra nsform ation-proi ect Or by visiting: Planning and Building Agency — Planning Division Public Counter 20 Civic Center Plaza Santa Ana, CA 92701 55394.1MN153'32005777. I 11A-12 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JUNE 18, 2019 TITLE: ORDINANCE SECOND READING: APPROVING DEVELOPMENT AGREEMENT NO.2018-02 WITH MAINPLACE SHOPPINGTOWN, LLC (STRATEGIC PLAN NO. 5,1) CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1't Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER CITY MANA ER RECOMMENDED ACTION Place ordinance on second reading and adopt. DISCUSSION On June 4, 2019, the following ordinance was introduced for first reading and City Council authorized publication of title by a vote of 4-2 (Sarmiento and Solorio dissented): ORDINANCE NO. NS-2967 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING DEVELOPMENT AGREEMENT NO. 2018-02 BETWEEN THE CITY OF SANTA ANA AND MAINPLACE SHOPPINGTOWN, LLC FOR THE MAINPLACE MALL TRANSFORMATION PROJECT AT 2800 NORTH MAIN STREET, PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 65864, ET SEQ. In summary, the Ordinance (Exhibit 1) approves the development agreement (DA), establishing terms for the term of the DA, incentives for development and automatic extensions of the DA, and community benefits through local hiring, local sourcing, public art, City access to open spaces, and local philanthropic engagement. In addition to approving the ordinance at first reading, the City Council approved conforming edits to the conditions of approval for the project's tentative parcel map (TPM No. 2018-02) for consistency with the DA. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #5 - Community Health, Livability, Engagement & Sustainability, Objective #1 (Establish a comprehensive community engagement initiative to expand access to information and create opportunities for stakeholders to play an active role in discussing public policy and setting priorities). Second Reading Ordinance: Development Agreement No. 2018-02 June 18, 2019 Page 2 FISCAL IMPACT There is no fiscal impact associated with this action. Norma Mitre Acting Clerk of the Council Exhibit: 1. Ordinance No. NS-2967 11 B-2 EXHIBIT 7 LS 6.4.19 CITY COUNCIL ORDINANCE NO. NS-XXXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING DEVELOPMENT AGREEMENT NO. 2018-02 BETWEEN THE CITY OF SANTA ANA AND MAINPLACE SHOPPINGTOWN, LLC FOR THE MAINPLACE MALL TRANSFORMATION PROJECT AT 2800 NORTH MAIN STREET, PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 65864, ET SEQ. WHEREAS, the City of Santa Ana ("City") is authorized pursuant to Government Code Sections 65864 through 65869.5 to enter into development agreements with persons having legal or equitable interests in real property for the purpose of establishing certainty for both City and owner in the development process; and WHEREAS, the City has found that development agreements strengthen the public planning process, encourage private participation in comprehensive planning by providing a greater degree of certainty in that process, reduce the economic costs of development, allow for the orderly planning of public improvements and services, allocate costs to achieve maximum utilization of public and private resources in the development process, and ensure that appropriate measures to enhance and protect the environment are achieved; and WHEREAS, the City enters into this Development Agreement pursuant to the provisions of the Government Code and applicable City policies; and WHEREAS, applicant MainPlace Shoppingtown, LLC ("Developer") proposes the MainPlace Mall Transformation Project ("MainPlace Project") at 2800 N. Main Street ('Property') in the City, more particularly described in Exhibit A, attached hereto and incorporated herein by this reference; and WHEREAS, the Property is an approximately 49-acre property and the current site of the existing MainPlace Mall, an enclosed 2- to 3-story shopping center with approximately 1,130,000 square feet of commercial uses; and WHEREAS, the MainPlace Project seeks to revitalize the existing MainPlace Mall to adapt to changing market conditions, facilitate private investment, and provide a long- term development plan for the Property; and WHEREAS, the MainPlace Project proposes a full buildout at the Property of 1,400,000 square feet of commercial, 750,000 square feet of office, 400 hotel rooms, and 1,900 residential units; and WHEREAS, the entitlements sought for the MainPlace Project include adoption of a Specific Plan (Specific Plan No. 4) approval of a Tentative Parcel Map (Tentative 55394.00053 V 2005772.1 11 B-3 Parcel Map. 2018-01), and approval of a Development Agreement (Development Agreement No. 2018-02); and WHEREAS, the Development Agreement, attached hereto as Exhibit B, came before the Planning Commission for a duly noticed public hearing on May 13, 2019. At that hearing, the Planning Commission recommended that the City Council approve said Development Agreement; and WHEREAS, the Development Agreement, attached hereto as Exhibit B, came before the City Council for a duly noticed public hearing on June 4, 2019. WHEREAS, entering into this Development Agreement would provide the City with extraordinary and significant benefits that are of regional significance, relate to existing deficiencies in public facilities, require the Developer to contribute a greater percentage of benefits than would otherwise be required, and represent benefits which would not otherwise be required as part of the development process; and WHEREAS, the Project and the use that the Developer proposes in connection with the Property have been extensively reviewed and considered by the City, and such proposed development and use have been found to accommodate the City's recommendations and suggestions in order to protect the public's interest to enhance the desirability of such proposed development and use. The terms and conditions of this Development Agreement have been found to be fair, just and reasonable, and the City has concluded that the pursuit of the MainPlace Project will serve the interests of the City; and WHEREAS, the City Council has determined that by entering into the Development Agreement, the City will promote orderly growth and quality development on the Property in accordance with the goals and policies set forth in the General Plan; and WHEREAS, the physical effects, if any, of the MainPlace Project and this Development Agreement have been analyzed pursuant to California Environmental Quality Act ("CEQA") (Pub. Resources Code section 21000 et seq.) in the certified Final Environmental Impact for the Fashion Square Commercial Center Project (" 1983 EIR"), Addendum ER 96-033 to that 1983 EIR ("1996 Addendum), and the MainPlace Mall Transformation Project EIR Addendum ("2019 Addendum), and together these documents contain a complete and accurate reporting of all of the potential environmental impacts associated with the MainPlace Project; and WHEREAS, the City and Developer have reached mutual agreement and desire to voluntarily enter into the Development Agreement to facilitate development of the Project subject to the conditions and requirements set forth therein; and WHEREAS, the terms and conditions of the Development Agreement have undergone review by the City Council at a publicly noticed hearing and have been found to be fair, just, and reasonable, and consistent with the General Plan; and 55394.00053\32005772.1 11 B-4 WHEREAS, the proposed Project is consistent with the MainPlace Specific Plan. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: SECTION 1. CEQA. The City Council of the City of Santa Ana hereby finds, determines, declares and ordain as follows: Based on the substantial evidence set forth in the record, including but not limited to the 1983 EIR, the 1996 Addendum, and the 2019 Addendum, the City Council finds that an addendum is the appropriate document for disclosing the changes to the MainPlace Mall Property, and that none of the conditions identified in Public Resources Code section 21166 and State CEQA Guidelines section 15162 requiring subsequent environmental review have occurred, because: A. The MainPlace Project does not constitute a substantial change that would require major revisions of the 1983 EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects. B. There is not a substantial change with respect to the circumstances under which the MainPlace Project will be developed that would require major revisions of the 1983 EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of the previously identified significant effects. C. New information of substantial importance has not been presented that was not known and could not have been known with the exercise of reasonable diligence at the time the 1983 EIR was certified or adopted, showing any of the following: (i) that the modifications would have one or more significant effects not discussed in the earlier environmental documentation; (ii) that significant effects previously examined would be substantially more severe than shown in the earlier environmental documentation; (iii) that mitigation measures or alternatives previously found not to be feasible would in fact be feasible and would substantially reduce one or more significant effects, but the applicant declined to adopt such measures; or (iv) that mitigation measures or alternatives considerably different from those analyzed previously would substantially reduce one or more significant effects on the environment, but which the applicant declined to adopt. SECTION 2. GENERAL PLAN CONSISTENCY. Pursuant to California Government Code section 65867.5(b) and based on the entire record before the City 55394.00053V2005772.1 11 B-5 Council, including all written and oral evidence presented to the City Council, the City Council hereby finds that the Development Agreement is compatible with the objectives, policies, and general plan land use programs specified in the General Plan for the City of Santa Ana in that: A. The City of Santa Ana has officially adopted a General Plan. B. The Development Agreement is compatible with the objectives, policies, general land uses, and programs specified in the General Plan, for the following reasons: 1. The existing General Plan land use designation for the Property is District Center —intended to serve as an anchor to the City's commercial corridors, and to accommodate major development activity. District Centers are to be developed with an urban character that includes a mixture of high-rise office, commercial, and residential uses which provide shopping, business, cultural, education, recreation, entertainment, and housing opportunities. 2. The proposed project will support several goals and policies of the General Plan, including: a. Housing Element (HE) Goal 2: Create diversity of quality housing, affordability levels, and living experiences that accommodate Santa Ana's residents and workforce of all household types, income levels, and age groups to foster an inclusive community. b. HE Policy 2.2: Create high intensity, mixed -use urban villages and pedestrian -oriented experiences that support the mid- to high-rise office centers, commercial activity, and cultural activities in the varied District Centers. c. HE Policy 4.4: Provide adequate rental and ownership housing opportunities and supportive services. d. Land Use (LU) Element Goal 1: Promote a balance of land uses to address basic community needs. e. LU Policy 1.2: Maintain and foster a variety of residential land uses in the City. f. LU Policy 4.3: Support land uses which provide community and regional economic and service benefits. g. LU Policy 4.4: Encourage the development of projects which promote the City's image as a regional activity center. 55394.0005302005772.1 11 B-6 h. LU Policy 5.5: Encourage development which is compatible with, and supportive of surrounding land uses. LU Policy 5.7: Anticipate that the intensity of new development will not exceed available infrastructure capacity. j. Land Use (LU) Element Goal 6: Reduce residential overcrowding to promote public health and safety. k. Urban Design (UD) Element Goal 1: Improve the physical appearance of the City through development of districts that project a sense of place, positive community image, and quality environment. LID Policy 1.1: New development and redevelopment must have the highest quality design, materials, finishes and construction. C. The proposed Development Agreement will not adversely affect the public health, safety, and welfare in that the Development Agreement will not result in incompatible land uses on adjacent properties, inconsistencies with any General Plan goals or policies, or adverse impacts to the environment. SECTION 3. EFFECTIVENESS. The Development Agreement shall not be effective unless and until the following are adopted and become effective: Resolution No. 2019-xx (2019 Addendum) and Ordinance No. NS-XXXX (MainPlace Specific Plan). If these approvals and Development Agreement are for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, or otherwise does not go into effect for any reason, then the Development Agreement shall be null and void and have no further force and effect. SECTION 4. INDEMNIFICATION. The Developer shall indemnify, protect, defend and hold the City and/or any of its officials, officers, employees, agents, departments, agencies, authorized volunteers, and instrumentalities thereof, harmless from any and all claims, demands, lawsuits, writs of mandamus, and other and proceedings (whether legal, equitable, declaratory, administrative or adjudicatory in nature), and alternative dispute resolution procedures (including, but not limited to arbitrations, mediations, and such other procedures), judgments, orders, and decisions (collectively "Actions"), brought against the City and/or any of its officials, officers, employees, agents, departments, agencies, and instrumentalities thereof, that challenge, attack, or seek to modify, set aside, void, or annul, any action of, or any permit or approval issued by the City and/or any of its officials, officers, employees, agents, departments, agencies, and instrumentalities thereof (including actions approved by the voters of the City) for or concerning the Project, whether such Actions are brought under the Ralph M. Brown Act, California Environmental Quality Act, the 55394.00053\32005772.1 11 B-7 Planning and Zoning Law, the Subdivision Map Act, Code of Civil Procedure sections 1085 or 1094.5, or any other federal, state or local constitution, statute, law, ordinance, charter, rule, regulation, or any decision of a court of competent jurisdiction. It is expressly agreed that the City shall have the right to approve, which approval will not be unreasonably withheld, the legal counsel providing the City's defense, and that Developer shall reimburse the City for any costs and expenses directly and necessarily incurred by the City in the course of the defense. City shall promptly notify the Developer of any Action brought and City shall cooperate with Developer in the defense of the Action. SECTION 5. CITY COUNCIL ACTION. The City Council approves Development Agreement No. 2018-02, attached hereto and incorporated herein as Exhibit B, and which shall not take effect unless and until the 2019 Addendum and the MainPlace Specific Plan are approved by the City Council. SECTION 6. PUBLICATION. The Clerk of the Council shall certify to the adoption of this ordinance and cause the same to be published in the manner prescribed by law. ADOPTED this 4th day of June, 2019. AYES: Councilmembers: NOES: Councilmembers: ABSTAIN: Councilmembers: NOT PRESENT: Councilmembers: APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: &' Lisa Storck, Assistant City Attorney Miguel A. Pulido Mayor 55394.00053\32005772.1 11 B-8 CERTIFICATE OF ATTESTATION AND ORIGINALITY attest to and certify that the I, NORMA MITRE, Acting Clerk of the Council, do hereby adopted by the City _ to be the original ordi20a19eand that said ordinance attached ordinanceNsanta Ana on of Santa Ana. Council of the City was published in accordance with the Charter of the City Date: Acting Clerk of the Council City of Santa Ana 55394.OW53U2005772.1 11 B-9 EXHIBIT A PROJECT SITE 55394.00053 V2005772.1 11 B-10 N L 11B-11 iiW4 iuui;3 ;'.n;s," I EXHIBIT B DEVELOPMENT AGREEMENT 11 B-12 DR RECORDED AT REQUEST OF: AND WHEN RECORDED RETURN TO: ) City of Santa Ana ) 20 Civic Center Plaza (M-30) ) Santa Ana, CA 92702 ) Attention: Clerk of the Council ) Exempt from filing fees pursuant to Government Code §27383 DEVELOPMENT AGREEMENT NO. 2019-NN A DEVELOPMENT AGREEMENT BETWEEN CITY OF SANTA ANA and MAIN PLACE SHOPPINGTOWN, LLC A DELAWARE LIMITED LIABILITY COMPANY � N� q 11 B-13 DEVELOPMENT AGREEMENT NO. 2019- NN This Development Agreement (hereinafter "Agreement") is entered into as of this _ day of 2019 by and between the City of Santa Ana, California (hereinafter "City"), and MAIN PLACE SHOPPINGTOWN, LLC, a DELAWARE limited liability company (hereinafter "Owner'): RECITALS A. City is authorized to enter into binding development agreements with persons having legal or equitable interests in real property for the development of such property, pursuant to Section 65864, et sec. of the Government Code. B. This Agreement constitutes a current exercise of City's police powers to provide predictability to Owner in the development approval process by vesting the permitted uses, density, intensity of use, and timing and phasing of development consistent with the Development Plan in exchange for Owner's commitment to provide significant public benefits to City as set forth in Section 4 below. C. Owner has requested City to enter into a development agreement and proceedings have been taken in accordance with the rules and regulations of City. D. The best interests of the citizens of the City of Santa Ana and the public health, safety and welfare will be served by entering into this Agreement. E. The City Council hereby finds and determines that this Agreement is of major significance because it will provide significant economic benefit to the City through additional jobs created by the construction and operation of the Project, increased transient -occupancy and sales tax revenue to the City, and general economic benefit. F. The provision by Owner of the public benefits allows the City to realize significant economic, recreational, open space, educational, social and public facilities benefits. The public benefits will advance the interests and meet the needs of Santa Ana residents and visitors to a significantly greater extent than would development of the Property without this Agreement. G. The physical effects, if any, of the Project and this Agreement have been analyzed pursuant to California Environmental Quality Act as amended to date and as documented in the Final Environmental Impact Report entitled "Fashion Square Cotmmercial Center Subsequent Final Environmental Impact Report" (State Clearinghouse House No. .oat and City of Santa Ana DP No. '','RU, ("FEIR"), the 1996 Addendum to the FEIR (State Clearinghouse House No. IM and City of Santa Ana DP No. 1996-25), and the 2019 Addendum to the FEIR (State Clearinghouse House No. EM and City of Santa Ana DP No. 2018-17) ("2019 Addendum"). H. This Agreement and the Project are consistent with the Santa Ana General Plan and any specific plan applicable thereto. I. All actions taken and approvals given by City have been duly taken or approved in accordance with all applicable legal requirements for notice, public hearings, findings, votes, and other procedural matters. 11 B-14 Development of the Property in accordance with this Agreement will provide substantial benefits to City and will further important politics and goals of City. K. This Agreement will eliminate uncertainty in planning and provide for the orderly development of the Property, ensure progressive installation of necessary improvements, provide for public services appropriate to the development of the Project, and generally serve the purposes for which development agreements under Section 65864, et scc . of the Government Code are intended; COVENANTS NOW, THEREFORE, in consideration of the above recitals and of the mutual covenants hereinafter contained and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties agree as follows: DEFINITIONS AND EXHIBITS. 1.1. Definitions. The following terms when used in this Agreement (including in the recitals above) shall be defined as follows: 1.1.1. "Agreement' means this Development Agreement. 1.1.2. "City" means the City of Santa Ana, a charter city and California municipal corporation. 1.1.3. "City Council' means the duly elected city council of the City of Santa Ana. 1.1.4. (INTENTIONALLY OMITTED] 1.1.5. "Development' means the improvement of the Property for the purposes of completing the structures, improvements and facilities comprising the Project including, but not limited to: grading; the construction of infrastructure and public facilities related to the Project whether located within or outside the Property; the construction of buildings and structures; and the installation of landscaping. "Development' does not include the maintenance, repair, reconstruction or redevelopment of any building, structure, improvement or facility after the construction and completion thereof. 1.1.6. "Development Exaction" means any requirement of City in connection with or pursuant to any Land Use Regulation or development approval for the dedication of land, the construction of improvements or public facilities, or the payment of fees in order to lessen, offset, mitigate or compensate for the impacts of development on the environment or other public interests. 1.1.7. "Development Impact Fee" means a monetary exaction other than a tax or special assessment, whether established for a broad class of projects by legislation of general applicability or imposed on a specific project on an ad hoc basis, that is charged by a local agency to the applicant in connection with approval of a development project for the purpose of defraying all or a portion of the cost of public facilities related to the development project, but does not include park "in lied' fees specified in Government Code Section 66477, fees for processing applications for governmental regulatory actions or approvals, or fees colleeted under -2- 11B-15 development agreements adopted pursuant to Article 2.5 of the Govermnent Code (commencing with Section 65864) of Chapter 4. 1.1.8. "Development Plan" means the plan for development of the Property as set forth in Exhibit "C." 1.1.9. "Development Project Review Approvals" refers to the administrative review of all projects meeting the requirements of Division 3 of Article V of the Santa Ana Municipal Code. 1.1.10. "Discretionary Action" or "Discretionary Approval" means an action that requires the exercise of judgment, deliberation, or discretion on the part of the City, including any board, agency, commission, or department and any officer or employee thereof, in the process of approving or disapproving Development of the Project, as distinguished from an activity that is defined herein as a Ministerial Permit or Ministerial Approval. 1.1.1 I. "Effective Date" means the date the ordinance approving and authorizing this Agreement becomes effective. 1.1.12. "Existing Land Use Regulations" means the Land Use Regulations that are in effect on the Effective Date, pursuant to California Government Code Section 65866. I.1.13. "Existing Project Approvals" means all Project Approvals approved or issued on or before the Effective Date. 1.1.14. "Future Project Approvals" means Project Approvals for the Project that are adopted, approved, or issued after the Effective Date. 1.1.15. "Land Use Regulations" means all ordinances, laws, resolutions, codes, rules, regulations, policies, requirements, guidelines, or other actions of City, including but not limited to the provisions set forth in the City's General Plan, Municipal Code, that affect, govern, or apply to the Development of the Project and use of the Property in a manner consistent with this Agreement, including, without limitation, the permitted use of land, the density or intensity of use, subdivision requirements, the maximum height and size of proposed buildings, the provisions for reservation or dedication of land for public purposes, and the design, improvement and construction standards and specifications applicable to the Development of the Property, subject to the terms of this Agreement, whether adopted by the City Council or the voters in an initiative. "Land Use Regulations" does not include any City ordinance, resolution, code, rule, regulation or official policy, governing: (a) the conduct of businesses, professions, and occupations; (b) taxes (special or general) and assessments; (c) the control and abatement of nuisances; (d) the granting of encroachment permits and the conveyance of rights and interests that provide for the use of or the entry upon public property; (c) the exercise of the power of eminent domain. -3- 11 B-16 1.1.16. "Owner' means the persons and entities listed as Owner on page 1 of this Agreement and their successors in interest to all or any part of the Property. 1.1.17. "Ministerial Approval," or "Ministerial Act" means the nondiserctionary permits, plans, inspections, certificates, documents and licenses required to be taken, issued, or approved by the City in order for Owner to develop the Project, including, without limitation, building permits, grading permits, Development Project Review Approvals, and other similar permits and approvals. Any approval or act that is not a Discretionary Approval is a Ministerial Approval. 1.1.18. `Mortgagee" means a mortgagee of a mortgage, a beneficiary under a deed of trust or any other security -device lender, and their successors and assigns. 1.1.19. "Net New" square footage means square footage constructed in excess of the redevelopment of the central box (i.e., the space previously occupied by Nordstrom), the construction of the Central Plaza, and the construction of a large -format entertainment use and associated parking and site improvement. 1.1.20. "Project" means the development of the Property in the City that is known as the MainPlace Mall and that is more specifically described in Exhibits "A" and `B," as contemplated by the Development Plan as such Development Plan may be further defined, enhanced, or modified pursuant to the provisions of this Agreement. L 1.21. "Project Approvals" means all site -specific (meaning specifically applicable to the Project only and not generally applicable to some or all other properties within the City) plans, maps, permits, and entitlements to use of every kind and nature that are sought or agreed to in writing by Owner in its sole and absolute discretion for Development of the Project and that are approved by the City. Project Approvals include, but are not limited to, general plan amendments, specific plan approvals or amendments, site plans, development project review approvals, tentative and final subdivision maps, design guidelines, variances, zoning designations, conditional use permits, grading, building, and other similar permits, the site - specific provisions of general plans, environmental assessments, including environmental impact reports and negative declarations. 1.1.22. "Property" means the real property described on Exhibit "A" and shown on Exhibit "B" to this Agreement. 1.1.23. "Public Benefit" refers to those benefits provided to the City and the community by Owner pursuant to Section 4 below. 1.1.24. "Reservation of Rights" means the rights and authority excepted from the assurances and rights provided to Owner under this Agreement and reserved to City under Section 3.3 of this Agreement. 1.1.25. "Term" has the meaning ascribed thereto in Section 2.4.1 below. 1.2. Exhibits. The following documents are attached to, and by this reference made a part of, this Aereement Exhibit "A" — Legal Description of the Property Exhibit "B" — Map showing Propertv and its location -4- 11 B-17 Exhibit "C" — Development Plan Exhibit "D" — Development Impact Fees Exhibit "E" — Assignment and Assumption Agreement Exhibit "F" — 2018 Base Tax Year Values 2. GENERAL PROVISIONS. 2.1. Binding Effect of Agreement. The Property is hereby made subject to this Agreement. Development of the Property is hereby authorized and shall be carried out in accordance with the terms of the Development Plan and this Agreement. 2.2. Ownership of Property. Owner represents and covenants that it is the Owner of the fee simple title to, or has an equitable interest in, the Property or a portion thereof. 2.3. City Council Findings. The City Council finds that: 2.3.1. This Agreement is consistent with the City's General Plan 2.3.2. This Agreement ensures a desirable and functional community environment, provides effective and efficient development of public facilities, infrastructure, and services appropriate for the development of the Project, enhances effective utilization of resources within the City. 2.3.3. This Agreement provides public benefits beyond those that are necessary to mitigate the development of the Project. 2.3.4. This Agreement strengthens the public planning process, encourages private participation in comprehensive planning and reduces costs of development and government. 2.3.5. The best interests of the citizens of the City and the public health, safety, and welfare will be served by entering into this Agreement. 2.4. Term. 2.4.1. The initial term of this Agreement shall commence on the Effective Date, and shall continue for a period of ten (10) years thereafter (the "Initial Term"), unless this term is modified or extended pursuant to the provisions of this Agreement. Together, the Initial Term and any extension under this Agreement constitute the "Term." 2.4.2. The Initial Term of this Agreement is automatically extended by five additional years for an Initial Term of 15 years if the Owner achieves the following milestones: (a) Within the first seven (7) years of the Initial Term, the redevelopment of the central box (i.e., the space previously occupied by Nordstrom), the construction of the Central Plaza, and the construction of a large -format (i.e.. minimum 75,000 net, new square feet) -5- 11 B-18 entertainment use and associated parking and site improvement, with certificates of occupancy having issued for at least 90 percent of floor area of such developments; and (b) Within the first eight (8) years of the Initial Term, commencement of (1) one or more hotel developments that are included in the Development Plan. For purposes of this section, "commencement" shall include the Owner having paid all required Development Impact Fees, been issued a building permit, and performed construction activity on the site of the hotel development. 2.4.3. The City hereby conditionally grants to Owner two five -year -extension options (each an "Extension Option'), in addition to the Initial Tenn as it may be extended under Section 2.4.2. The Extension Options are subject to the following conditions: (a) To exercise the first Extension Option, by the end of the tenth year of the Initial Term, Owner must demonstrate that during any year of the first ten years the total gross annual general fund revenues generated by the Project have increased by at least a factor of 2.0 over 2018 revenues generated by the Project , as set forth in Exhibit F. (b) To exercise the second Extension Option (if the Term has been extended to 15 years under either Section 2.4.2 or subsection 2.4.3(a) above), Owner must demonstrate that the total gross annual general fund revenues generated by the Project have increased by at least a factor of 2.5 over 2018 revenues generated by the Project, as set forth in Exhibit F, during any one of the years I I through 15. (c) if Owner does not satisfy the prerequisites to exercising an Extension Option under subsection 2.4.3(a) or (b) above, the City may, at its sole discretion, allow Owner to exercise that Extension Option anyway if Owner does both of the following: (i) Provides City with a plan that includes a timeline and specific milestones for moving the non-residential portion of the Project forward on a priority basis, demonstrating to the City's satisfaction that the Project will meet or exceed expectations of fiscal benefit to the City by the end of the five-year Extension Option period; and (ii) Pays to the City a fee of $250,000.00. 2.4.4. When the Term, including any authorized extension thereof, ends, Owner shall have no vested right under this Agreement, regardless of whether or not Owner has paid any Development Impact Fee. 2.4.5. If any party other than Owner initiates litigation that challenges the Project, this Agreement (and/or the ordinance approving this Agreement), or any of the Existing Project Approvals, the Owner will have the right to toll commencement of the Term and any obligations of Owner under this Agreement during the period of such litigation. The tolling shall commence upon receipt by the City of written notice from Owner invoking this right to tolling. The tolling shall terminate when the action, including any appeal, is finally resolved, whether by entry of a final, non -appealable judgment that upholds the Project and the Existing Project Approvals or voluntary or involuntary dismissal of the entire action (and the passage of time required to appeal an involuntary dismissal). Owner shall similarly have the right to toll commencement of the Term and any obligations of Owner under the Agreement in the event a referendum petition challenging the Project, the ordinance approving this Agreement, or any of the Project Approvals is submitted to the Citv Clerk. The tolling shall terminate if and when: (1) the Citv Clerk 11 B-19 determines the referendum petition did not receive sufficient signatures to qualify for the ballot; (2) the City Council rescinds the challenged action; or (3) the election results of the referendum are certified by the City Council. 2.5. Assignment. 2.5.1. Right to Assign. Owner shall have the right to sell, transfer or assign the Property in whole or in part (provided that no such partial transfer shall violate the Subdivision Map Act, Government Code Section 66410, et sec.) to any person, partnership, joint venture, firm, limited liability company, or corporation at any time during the term of this Agreement; provided, however, that any such sale, transfer or assignment shall include the assignment and assumption of the rights, duties and obligations arising under or from this Agreement and be made in strict compliance with the following conditions precedent: (a) No sale, transfer or assignment of any right or interest under this Agreement shall be made unless made together with the sale, transfer or assignment of all or a part of the Property to which such rights or interests apply. (b) Before with any such sale, transfer or assignment: (i) Owner shall notify City, in writing, of such sale, transfer or assignment and shall provide City with an executed agreement ("Assignment and Assumption Agreement"), in substantially the form attached hereto as Exhibit E, by the purchaser, transferee or assignee and providing therein that the purchaser, transferee or assignee expressly and unconditionally assumes all the duties, obligations, agreements, covenants, waivers of Owner under this Agreement, including, without limitation, the covenants not to sue and waivers contained in Sections 6.2 and 7.4 hereof. (ii) Owner shall also provide City with such information reasonably requested by City that demonstrates to City's reasonable satisfaction such transferee or assignee has sufficient development experience and financial capability to complete the Project and perform all obligations assumed. (c) Any sale, transfer or assignment not made in strict compliance with the foregoing conditions shall constitute a default by Owner under this Agreement. Notwithstanding the failure of any purchaser, transferee or assignee to execute the agreement required by this subsection 2.5.1(c)(i), the burdens of this Agreement shall be binding upon such purchaser, transferee or assignee, but the benefits of this Agreement shall not inure to such purchaser, transferee or assignee until and unless such agreement is executed. (d) The Executive Director for the Planning and Building Agency shall have the administrative authority to determine that Owner has complied with the above conditions. Such determination shall not be unreasonably withheld, conditioned, or delayed. 2.5.2. Release of Transferring Owner. Notwithstanding any sale, transfer or assignment, a transferring Owner shall continue to be obligated under this Agreement with respect to the transferred Property or any transferred portion thereof, unless such transferring Owner is given a release in writing by City, which release shall be provided by City upon the full satisfaction by such transferring Owner of the following conditions: -7- 11 B-20 (a) Owner is not then in default under this Agreement. (b) Owner has complied with Section 2.5.1 above. (c) The purchaser, transferee or assignee provides City with security equivalent to any security previously provided by Owner to secure performance of its obligations hereunder. 2.5.3, Subsequent Assignment. Any subsequent sale, transfer or assignment after an initial sale, transfer or assignment shall be made only in accordance with and subject to the terms and conditions of this Section 2.5. 2.6. Utilities. The Project shall be connected to all utilities necessary to provide adequate water, sewer, gas, electric, and other utility service to the Project, prior to the issuance of final approval for occupancy or the certificate of occupancy for any portion of the Project. 2.7. Sale to Public and Completion of Constntction. The provisions of Section 2.5.1 shall not apply to the sale or lease (for a period longer than one year) of any residential lot or unit that has been finally subdivided and is individually (and not in "bulb') sold or leased to a member of the public. This Agreement shall terminate with respect to any residential lot or unit and such lot shall be released and no longer be subject to this Agreement without the execution or recordation of any further document upon satisfaction of both of the following conditions: 2.7.L The residential lot or unit has been finally subdivided and individually (and not in "bulk") sold or leased (for a period longer than one year) to a member of the public; and 2.7.2. City final approval for occupancy or the certificate of occupancy has been issued for a building on the lot, and the fees for such lot set forth in this Agreement have been paid. 2.8. Administrative Changes and Modifications. 2.8.1. Owner and City acknowledge that further planning and development of the Project may demonstrate that refinements and changes are appropriate with respect to the details and performance of the parties under this Agreement. The Parties desire to retain a certain degree of flexibility with respect to the details of the Project development and with respect to those items covered in general terms under this Agreement, the Existing Project Approvals, the Existing Land Use Regulations, and, once issued, any Future Project Approvals. 2.8.2. If and when the parties find that "Substantially Conforming Changes," as herein defined, are necessary, desirable or appropriate, they may, unless otherwise required by law, effectuate such changes or adjustments through an administrative operating memorandum that is executed by the Owner and the Executive Director of the City's Planning and Building Agency or the Director's designee. As used herein, a "Substantially Conforming Change' is a minor change, modification, or adjustment that is deemed to be in substantial conformance under the Development Plan. A Substantially Conforming Change is not considered an amendment to this Agreement or to Development Plan, and so does not require prior notice or hearing by the Planning Commission or City Council. 2.9. Amendment or Cancellation of Agreement. Except for Substantially Conforming Changes as defined by Section 2.8.2 above, this Agreement may be amended or modified from -8- 11 B-21 time to time only with the written consent of Owner and the City or their successors and assigns, and only upon approval of an amendment by the City Council after a public hearing in accordance with Government Code Section 65868. This provision shall not limit any remedy of City or Owner as provided by this Agreement. 2.10. Termination. This Agreement shall be deemed terminated and of no further effect upon the occurrence of any of the following events: 2.10.1. Expiration of the stated Term of this Agreement as set forth in Section 2.4. 2.10.2. Entry of a final judgment setting aside, voiding or annulling the adoption of the ordinance approving this Agreement. 2.10.3. The adoption of a referendum measure overriding or repealing the ordinance approving this Agreement. In the event a referendum petition challenging the ordinance approving this Agreement is submitted to the City Clerk, Owner shall deposit with the City Ten Thousand Dollars ($10,000) ("Petition Deposit") to cover the actual cost incurred by the City examining the petition and verifying signatures. Should the referendum qualify for the ballot, Owner may request, at or prior to the Council meeting at which the Council will take up the referendum issue, that the City Council repeal the ordinance, rather than submitting it to the voters. If Owner does not request that the City Council repeal the ordinance, and the City Council submits the ordinance to the voters, Owner shall deposit Fifty Thousand Dollars ($50,000) ("Referendum Deposit") with the City. City may use the funds to pay any and all costs associated with the said referendum measure. Any funds remaining in the Petition Deposit may be put toward the Referendum Deposit at the Owner's request. If at any time the Referendum Deposit account has Five Thousand Dollars ($5000) or less remaining, Owner shall, within three (3) days of receiving notice from the City, deposit with the City additional funds as requested by the City to cover all costs and expenses associated with the referendum and holding the related election. Following certification of the election results, any funds remaining in the Petition Deposit or the Referendum Deposit account shall be returned to the Owner. In the event Owner requests that the City Council repeal the ordinance and the City Council nonetheless determines to submit the ordinance to the voters, Owner shall have no responsibility for the costs associated with holding the election. 2.10.4. Completion of the Project in accordance with the terms of this Agreement including issuance of all required occupancy permits, final approval for occupancy by the City, and acceptance by City or applicable public agency of all required dedications. 2.10.5. Termination of the Agreement as provided in Sections 6.3 or 6.4 herein. Termination of this Agreement shall not constitute termination of any other land use entitlements approved for the Property. Upon the termination of this Agreement, no party shall have any further right or obligation hereunder except with respect to any obligation to have been performed prior to such termination or with respect to any default in the performance of the provisions of this Agreement that has occurred prior to such termination or with respect to any obligations that are specifically set forth as surviving this Agreement. Upon such termination, any Development Impact Fees paid by Owner to City for residential units on which construction has not yet begun shall be refunded to Owner by City. 2.11. Notices. S2 11 B-22 2.11.1. As used in this Agreement, "notice" includes, but is not limited to, the communication of notice, request, demand, approval, statement, report, acceptance, consent, waiver, appointment or other communication required or permitted hereunder. 2.11.2. All notices shall be in writing and shall be considered given either: (i) when delivered in person to the recipient named below; or (ii) on the date of delivery shown on the return receipt, after deposit in the United States mail in a scaled envelope as either registered or certified mail with return receipt requested, and postage and postal charges prepaid, and addressed to the recipient named below. All notices shall be addressed as follows: If to City: City Clerk 20 Civic Center Plaza, 8'h Floor PO Box 1988 M-30 Santa Ana. Ca 82702 Copy to: City Manager City Attorney Executive Director of Planning and Building Agency If to Owner: [Owner ENTITY] [ADDRESS] [ADDRESS] Attn: Manager Telephone: [ 1 Facsimile: [ 1 Copy to: Peter J. Howell Rutan & Tucker 611 Anton Blvd. Costa Mesa, CA 92626 2.11.3. Either party may, by notice given at any time, require subsequent notices to be given to another person or entity, whether a party or an officer or representative of a party, or to a different address, or both. Notices given before actual receipt of notice of change shall not be invalidated by the change. 3. DEVELOPMENT OF THE PROPERTY. 11 B-23 3.1. Rights to Develop. Subject to the teens of this Agreement including the Reservation of Rights in Section 3.3 below, Owner shall have a vested right to develop the Property in accordance with, and to the extent of, this Agreement and the Project Approvals. 3.1.1. Except as expressly provided otherwise herein, the Project shall remain subject to all Existing Land Use Regulations and Project Approvals. Except as otherwise provided in this Agreement, and notwithstanding the authority of the City to further revise the Land Use Regulations pursuant to Government Code section 65866, the permitted uses of the Property, the density and intensity of use, the maximum height and size of proposed buildings, and provisions for reservation and dedication of land for public purposes shall be those set forth in the Existing Land Use Regulations and Project Approvals. 3.1.2. In accordance with Government Code Section 66452.6(a), any tentative map approved which relates to all or a portion of the Property shall be extended for the greater of (i) the Tenn of this Agreement or (ii) expiration of the tentative map pursuant to Section 66452.6. 3.1.3. Owner shall comply with all mitigation measures required to be undertaken pursuant to any document prepared in compliance with the California Environmental Quality Act with respect to the Project. 3.1.4. Notwithstanding Section 3.1.1 above, Owner acknowledges and agrees that the Project requires additional Project Approvals (the Future Project Approvals identified in Section 1.1.13). These Future Project Approvals shall be consistent with the Existing Project Approvals and this Agreement as to the permitted uses of the Property, the density and intensity of use, the maximum height and size of proposed buildings, and provisions for reservation and dedication of land for public purposes; however the Future Project Approvals may include additional conditions that are lawful and appropriate to the type of Project Approval. 3.2. Effect of Agreement on Land Use Regulations. Except as otherwise provided under the terms of this Agreement including the Reservation of Rights in Section 3.3 below, the rules, regulations and official policies governing permitted uses of the Property, the density and intensity of use of the Property, the maximum height and size of proposed buildings, and the design, improvement and construction standards and specifications applicable to development of the Property shall be the Existing Land Use Regulations and Project Approvals. In connection with any subsequently adopted Project Approvals and except as specifically provided otherwise herein, City may exercise its discretion in accordance with the Land Use Regulations then in effect, as provided by this Agreement, including, but not limited to, the Reservation of Rights. City shall accept for processing, review, and take action on all applications for subsequent Project Approvals, and such applications shall be processed in the same manner and the City shall exercise its discretion, when required or authorized to do so, to the same extent it would otherwise be entitled in the absence of this Agreement. 3.2.1. City shall reasonably strive to complete: (a) its initial review of individual development projects within 30 days after the application is deemed complete, (b) any second plan review within 15 days after submission, and (c) any third plan review within 10 days after submission. 11 B-24 3.2.2. Notwithstanding the foregoing, the City does not guarantee that the timelines above will be met, and failure to meet these timelines does not constitute a default. 3.2.3. To help ensure expedited review of its development approvals, Owner may elect to pay for City to use a contract planner. City agrees to retain a contract planner to expedite review, if Owner so elects. 3.3. Reservation of Rights. 3.3.1. Limitations. Reservations and Exceptions. Notwithstanding any other provision of this Agreement, the following are not Existing Land Use Regulations, but shall apply to the development of the Property as they are established at the time of application, provided such regulations and/or fees (as applicable) are not designed in a manner such that they are applicable only to the Project and/or Property: (a) Processing fees and charges of every kind and nature imposed by City to cover the actual costs to City of processing applications for Project Approvals or for monitoring compliance with any Project Approvals granted or issued. (b) Procedural regulations relating to hearing bodies, petitions, applications, notices, findings, records, hearings, reports, recommendations, appeals and any other matter of procedure. (c) Regulations, policies and rules governing engineering and construction standards and specifications applicable to public and private improvements, including, without limitation, all uniform codes adopted by the City and any local amendments to those codes adapted by the City, including, without limitation, the City's Building Code, Plumbing Code, Mechanical Code, Electrical Code, and Grading Ordinance. (d) Regulations that are in material conflict with this Agreement but that are reasonably necessary to protect the residents of the Project or the immediate community from a condition perilous to their health or safety. To the extent possible, any such regulations shall be applied and construed so as to provide Owner with the rights and assurances provided under this Agreement. (e) Regulations that are not in material conflict with this Agreement or the Development Plan. Any regulation, whether adopted by initiative or otherwise, limiting the rate or timing of development of the Property shall be deemed to materially conflict with the Development Plan and shall therefore not be applicable to the development of the Property. (0 Regulations that are in material conflict with the Development Plan; provided Owner has given written consent to the application of such regulations to development of the Property. (g) Regulations that impose, levy, alter or amend fees, or charges relating to consumers or end users, including, without limitation, trash can placement, service charges and limitations on vehicle parking. (h) Regulations of other public agencies, including Development Impact Fees adopted or imposed by such other public agencies, although collected by City. HIPA 11 B-25 3.3.2. Subsequent Project Approvals. This Agreement shall not prevent City, in acting on subsequent Project Approvals and to the same extent it would otherwise be authorized to do so absent this Agreement, from applying subsequently adopted or amended Land Use Regulations that do not materially conflict with this Agreement. 3.3.3. Modification or Suspension by State or Federal Law. In the event that State, County or Federal laws or regulations, enacted after the Effective Date of this Agreement, prevent or preclude compliance with one or more of the provisions of this Agreement, such provisions of this Agreement shall be modified or suspended as may be necessary to comply with such State or Federal laws or regulations; provided, however, that this Agreement shall remain in full force and effect to the extent it is not inconsistent with such laws or regulations and to the extent such laws or regulations do not render such remaining provisions impractical to enforce. 3.3.4. Intent. The parties acknowledge and agree that City is restricted in its authority to limit certain aspects of its police power by contract and that the foregoing limitations, reservations and exceptions are intended to reserve to City all of its police power that cannot be or are not expressly so limited. This Agreement shall be construed, contrary to its stated terms if necessary, to reserve to City all such power and authority that cannot be or is not by this Agreement's express terms so restricted. 3.4. Regulation by Other Public Agencies. It is acknowledged by the parties that other public agencies not within the control of City may possess authority to regulate aspects of the development of the Property separately from or jointly with City and this Agreement does not limit the authority of such other public agencies. 3.5. Timing of Development. Because the California Supreme Court held in Pardee Consavction Co, v. City of Camarillo, 37 Cal. 3d 465 (1984), that the failure of the parties in that case to provide for the timing of development resulted in a later -adopted initiative restricting the timing of development to prevail over the parties' agreement, it is the specific intent of the Parties to provide for the timing of the Project in this Agreement. To do so, the Parties acknowledge and provide that Owner shall have the right, but not the obligation, to complete the Project in such order, at such rate, at such times, and in as many development phases and sub - phases as Owner deems appropriate in its sole subjective business judgment, except for the following: 3.5.1. The building permit for residential units 401 up to 820 may not be issued until Owner commences construction activities for all development components on the Property described in Section 2A.2(a). For purposes of this section, "commences" shall include the Owner having paid all required Development Impact Fees, been issued a building permit, and performed construction activity on the site. However, in the event Owner determines to proceed with a mixed -use development that includes residential, as well as a commercial component of not less than 20,000 square feet, the limitation set forth in the preceding sentence shall not apply. 3.5.2. The building pcnmit for the 821th residential unit may not be issued until at least 200,000 square feet of net new non-residential development, excluding office space, on the Property has commenced construction. l3- 11 B-26 3.5.3. The building permit for the 1350th residential unit may not be issued until at least 400,000 square feet of net new non-residential development, excluding office space, on the Property has commenced construction 3.6. Property Maintenance Agreement. 3.6. L Owner shall, as required by the Conditions of Approval, enter into a Property Maintenance Agreement which shall include: (a) A Parking Management Plan; and (b) A Property Maintenance Plan. 3.7. Moratoria. Except as specifically set forth in this section, City agrees that to the extent permitted by law, no moratorium or other similar limitation (whether relating to the rate, timing, or sequencing of the development of the Project or any part thereof and whether or not enacted by local initiative or otherwise) affecting subdivision maps, grading or building permits, occupancy certificates, or other entitlements approved, issued, or granted within the City, after the Effective Date of this Agreement, shall apply to the Project. Owner acknowledges and agrees that the provisions hereof shall not preclude the application to the Project of a moratorium or other similar limitation (of the type described in the preceding sentence) enacted in order to protect an imminent threat to the public health or safety. 3.8. Development Agreemcnt/Proiect Approvals. In the event of any inconsistency between any Existing Land Use Regulation and a Project Approval, the provisions of the Project Approval shall control. In the event of any inconsistency between any Existing Land Use Regulation or Project Approval and this Agreement, the provisions of this Agreement shall control. 4. PUBLIC BENEFITS. 4.1. Public Benefits. The Project is expected to bring significant fiscal benefits to the City. The Project will also serve to implement the City's General Plan vision for the Property, which has long been designated as a District Center, where relatively intense mixed -use development is encouraged. In addition, Owner has committed by this Agreement to contribute to the acquisition, construction and maintenance of certain "Public Benefits" as provided below. 4.1.1. City Facilities. Owner shall provide the following benefits towards the acquisition, construction and maintenance of the City Facilities, as follows: (a) Public Art. Owner shall create, install, and maintain a public art project with a value equivalent to one-half of one percent (0.5%) of the total construction cost of the Project. Total construction cost shall mean all construction costs, but shall not include design and engineering costs. Owner shall prepare and submit to the City, no later than one hundred eighty (180) days before final approval for occupancy or the issuance of a certificate of occupancy, a public art plan that is consistent with Chapter 15 of the Citywide Design Guidelines, Public Art Guidelines. Although Owner anticipates satisfying all or most of the entire Public Art requirement early in the implementation of the Project, this requirement shall be satisfied as long as art with a value equivalent to one-half of one percent (0.5%) of the completed portion of the Project has been installed prior to final approval for occupancv or the M 11 B-27 issuance of a Certificate of Occupancy for that portion of the Project. 4.1.2. Public -Accessible Benefits. (a) Owner shall provide each of the public benefits described in the Development Plan, including the Specific Plan. (b) Owner shall provide the City, or mutually acceptable designee of City, with use of the Central Plaza, Entry Plaza, or other mutually acceptable space at least 12 days each calendar year (no more than two of which shall be consecutive and no more than three of which shall be on a Saturday or Sunday) for events that are reasonably compatible with Project programming. (c) Owner shall provide at least 10 free events each year for the general public. (d) Owner shall provide publicly accessible open -space areas, to be owned and maintained by Owner, as identified in the Development Plan. (e) Owner shall install bike lanes and sidewalk along Main Place Drive between Main Street and Bedford Avenue, as specified in the Project Approvals.. (f) Owner shall provide and maintain secure bike lockers or bike storage rooms in at least four locations on the Property, including at least two within or in close proximity to the residential development. At least half of the lockers shall be trade available for free to Project residents and employees. (g) In connection with development of any office building, Owner shall provide a secure, private shower facility for employees of tenants located in the office building to use to shower and change after riding to the Project site, which shall be made available free of charge to said employees (though commercial tenants may be charged as part of their share of common -area expenses). (h) As part of its obligation to provide Public Art, Owner shall provide at least two water features in public areas of the Project (which include public areas of the enclosed mall), one of which may be a splash pad, if Owner determines the installation and maintenance of a splash pad to be feasible and desirable. (i) Owner shall include at least one high -end food court (i.e., "food hall') area of the Project and shall endeavor to ensure that at least ten percent (10%) of the leasable square footage is occupied by new, local food vendors, to the extent reasonably feasible. Q) Owner shall submit to the City within 90 days of the Effective Date, a plan for ongoing engagement and support of local philanthropic activities within the City focusing on, but not limited to, the following activities: (i) Education (ii) Culture 15- 11 B-28 (iii) Arts (k) Tenant Character and Quality. Notwithstanding any provision herein to the contrary, Owner covenants that, for the Term of this Agreement, Owner will endeavor to ensure that the tenant mix remains consistent with a high quality regional shopping center, equivalent to or surpassing the current tenant mix in terns of quality. The hotels will be operated under an internationally recognized hotel flag or by a boutique hotel operator with a demonstrated track record of success operating similar hotels and classified as a 3 star or above in a 5-star rating system as widely recognized and commonly used in the hospitality industry. 4.1.3. Graffiti Removal. Owner shall also install and maintain graffiti protection on new surfaces and shall, within 48 hours of discovery of graffiti, cause it to be removed and associated restorations completed throughout the Project. 4.2. Local Live -Work Preference. Prior to issuance of any building permits, Owner shall develop and submit to the City Manager or the City Manager's designee, a local live -work plan for the Project targeting, to the extent feasible and consistent with state and federal fair housing laws, a preference or priority for persons who currently either live or work in the City of Santa Ana for the rental or sale of residential units at the Project. 4.3. Local Sourcing Plan. Owner agrees to make a good -faith effort to encourage contractors and suppliers to hire and procure locally, to the extent that it is cost effective and does not delay the overall project development schedule. 5. REVIEW FOR COMPLIANCE. 5.1. Periodic Review. 5.1.1. The City shall review this Agreement annually, on or before the anniversary of the Effective Date, in order to ascertain the compliance by Owner with the terms of this Agreement ("Annual Review'). Owner shall submit an Annual Monitoring Report, in a form acceptable to the City Manager, within thirty (30) days after written notice from the City Manager. The failure of the City to conduct the Annual Review shall not constitute a default by Owner. The Annual Monitoring Report shall be accompanied by an "Annual Review and Administration Fee" sufficient to defray the estimated costs of review and administration of the Agreement during the succeeding year. The amount of the Annual Review and Administration Fee" shall be set annually by resolution of the City Council. 5.1.2. The Annual Review shall include a progress report on the status of the implementation of the Project and the new tax revenue generated by the Project, including, but not limited to, the following: components: (a) Development and construction progress of the following uses and Project (i) Site development (ii) Public infrastructure, (iii) Project design features, M 11 B-29 (iv) Cotnnumity benefits, (v) Plaza, (vi) Hotel, (vii) Residential, (viii) Commercial, (ix) Office (x) Parking (xi) Philanthropic activities (education, culture, arts) (b) Reporting for items listed in subsection 5.1.2(a) shall be include a table substantially similar to the followinti: An example of a compliance report fa- sire dcvelopnnent and can be applied to other above criter/a and meh-ics. Reporting Period: 2022 — 2"^ Report Year 3 of 10 of Agreement Use Approved Total Cumulative Remaining to Status & Look Ahead SF/Units/Rooms Completed In Total Be Period Completed Completed Residential 1.900 100 200 1.700 On target with 300 to be completed in the next period Hotel 400 150 150 250 Negotiating with Hilton to construction a new full service hotel for the next period Commercial 300,000 (vac) 100,000 200,000 100,000 150k ten-year lease with Tenant Existing A since 2019. 1,100,000 50K 20 Year lease with Tenant (ex) B. Working with Tenant C for remaining 100k with a 15 year lease. Commercial 250,000 150,000 150,000 100,000 150k completed for Kidzania. New 20-Yearlease. Negotiating with Tenant X for a 15 year lease. New Office 750,000 0 150,000 600.000 150k completed in 2020. Tenant X with 20-year lease. Market is soft. No new activity in reporting period. Anticipate XX for next period. _17_ 11 B-30 (c) Progress relative to economic projections of. (i) Increases in property tax, (ii) Property Tax In -Lieu of VLF received by the City, (iii) Sales tax received from the Project, (iv) Business tax received from the Project, (v) Hotel Visitors Tax (HVT) (vi) Utility User Tax received from the Project, (d) Reporting for items listed in subsection 5.1.2(c) shall be include a table, orcoared by the Owner with City's cooperation, substantially similar to the following: Reporting Period: 2022 — 211d Report Year 3 of 10 of Agreement Revenue Total for Period Cumulative to Percentage Status & Look Ahead date increase over 2018 Base Year Property Tax Property Tax In - Lieu of VLF Sales Tax I TOT (HVT) Business Tax Franchise Tax UUT 5.2. Special Revicw. The City Council may order a special review of compliance with this Agreement at any time, but not more than once during any 12 month period. The City Manager, or his or her designee, shall conduct such special reviews. 5.3. Review Procedure. -18- 11 B-31 5.3.1. During either a periodic review or a special review, Owner shall be required to demonstrate good -faith compliance with the terms of this Agreement. The burden of proof on this issue shall be on Owner. 5.3.2. Upon completion of a periodic review or a special review, the City Manager, or the City Manager's designee, shall submit a report to the Planning Commission setting forth the evidence concerning good -faith compliance by Owner with the terms of this Agreement and his or her recommended finding on that issue. 5.3.3. If the Planning Cotrunission finds and determines on the basis of substantial evidence that Owner has complied in good faith with the terms and conditions of this Agreement, the review shall be concluded. 5.3.4. If the Planning Commission finds and determines on the basis of substantial evidence that Owner has not complied in good faith with the terms and conditions of this Agreement: (a) The Planning Commission shall provide written notice to Owner of such findings setting forth the nature of the problem and the actions, if any, required of Owner to cure such problem. (b) If the problem can be cured and Owner fails to take such actions and cure such problem within sixty (60) days after the effective date of the Planning Commission's notice or, in the event that such problem cannot be cured within such sixty (60) day period but can be cured within a longer time, has failed to commence the actions necessary to cure such problem within such sixty (60) day period and to diligently proceed to complete such actions and cure such problem, then the Commission may recommend to the City Council modification or termination of this Agreement. (c) Owner may appeal a Planning Commission determination pursuant to this Section 5.3.4 pursuant to City's rules for consideration of appeals in zoning matters then in effect. Notice of default as provided under Section 6.3 of this Agreement shall be given to Owner prior to or concurrent with proceedhtgs under Section 5.4 and Section 5.5. 5.4. Proceedings Upon Modification or Termination. If, upon a finding under Section 5.3, City determines to proceed with modification or termination of this Agreement, City shall give written notice to Owner of its intention so to do. The notice shall be given at least ten (10) calendar days prior to the scheduled hearing and shall contain: 5.4.1. The time and place of the hearing; 5.4.2. A statement as to whether or not City proposes to terminate or to modify this Agreement; and, 5.4.3. Such other inforniation that the City considers necessary to inform Owner of the nature of the proceeding. 5.5. Hearing on Modification or Termination. At the time and place set for the hearing on modification or termination, Owner shall be given an opportunity to be heard. Owner shall be required to demonstrate good -faith compliance with the terms and conditions of this Agreement. The burden of proof on this issue shall be on Owner. If the City Council finds, based upon _19_ 11 B-32 substantial evidence, that Owner has not complied in good faith with the terms or conditions of this Agreement, the City Council may terminate this Agreement or, in lieu of termination and with the consent of Owner, modify this Agreement and impose such conditions as are reasonably necessary to protect the interests of the City. The decision of the City Council shall be final. 5.6. Certificate of Agreement Compliance. 5.6.1. If, at the conclusion of a Periodic or Special Review, Owner is found to be in compliance with this Agreement, City shall, upon request by Owner, issue a Certificate of Agreement Compliance ("Certificate) to Owner stating that after the most recent Periodic or Special Review and based upon the information known or made known to the City Manager and City Council that: (1) this Agreement remains in effect; and (2) Owner is not in default. The Certificate shall be in recordable form, shall contain information necessary to communicate constructive record notice of the finding of compliance, shall state whether the Certificate is issued after a Periodic or Special Review and shall state the anticipated date of commencement of the next Periodic Review. Owner may record the Certificate with the County Recorder. 5.6.2. Whether or not the Certificate is relied upon by assignees or other transferees or Owner, City shall not be bound by a Certificate if a default existed at the time of the Periodic or Special Review, but was concealed from or otherwise not known to the City Manager or City Council. 5.7. Conditions of Discretionary Approvals. The requirements imposed as conditions of any discretionary approval received through the City's existing regulatory process shall be governed by the terns of those approvals, and in no event shall such conditions be affected by the termination, cancellation, rescission, revocation, or default or expiration of this Development Agreement (although such conditions must comply with the Applicable Rules). 6. DEFAULT AND REMEDIES 6.1. Remedies in General. It is acknowledged by the parties that City would not have entered into this Agreement if it were to be liable in damages under this Agreement, or with respect to this Agreement or the application thereof. In general, each of the parties hereto may pursue any remedy at law or equity available for the breach of any provision of this Agreement, except that City shall not be liable in damages to Owner, or to any successor in interest of Owner, or to any other person, and Owner covenants not to sue for damages or claim any damages: 6.1.1. For any breach of this Agreement or for any cause of action that arises out of this Agreement; or 6.1.2. For the taking, impairment or restriction of any right or interest conveyed or provided under or pursuant to this Agreement; or 6.1.3. Arising out of or connected with any dispute, controversy or issue regarding the application or interpretation or effect of the provisions of this Agreement. 6.2. Release. 6.2.1. Except for non -monetary remedies, Owner, for itself, its successors and assignees, hereby releases City, its officers, agents and employees from any and all claims. -20- 11 B-33 demands, actions, or suits of any kind or nature arising out of any liability, known or unknown, present or future, including, but not limited to, any claim or liability, based or asserted, pursuant to Article 1, Section 19 of the California Constitution, the Fifth and Fourteenth Amendments to the United States Constitution, or any other law or ordinance which seeks to impose any other liability or damage, whatsoever, upon City because it entered into this Agreement or because of the terms of this Agreement. Owner hereby acknowledges that it has read and is familiar with the provisions of California Civil Code Section 1542. which is set forth below: "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR." 6.2.2. By initialing below, Owner hereby waives the provisions of Section 1542 in connection with the matters that are the subject of the foregoing waivers and releases. Owner's Initials 6.3. Termination or Modification of Agreement for Default of Owner. City may terminate or modify this Agreement for any failure of Owner to perform any material duty or obligation of Owner under this Agreement, or to comply in good faith with the terms of this Agreement (hereinafter referred to as "default"); provided, however, City may terminate or modify this Agreement pursuant to this Section 6.3 only after providing written notice to Owner of default setting forth the nature of the default and the actions, if any, required by Owner to cure such default and, where the default can be cured Owner has failed to take such actions and cure such default within sixty (60) days after the effective date of such notice or, in the event that such default cannot be cured within such sixty (60) day period but can be cured within a longer time, has failed to continence the actions necessary to cure such default within such sixty (60) day period and to diligently proceed to complete such actions and cure such default. City's sole remedy for any default or breach of this Agreement by Owner shall be City's right to terminate this Agreement. 6.4. Voluntary Termination of Agreement by Owner. In the event Owner determines, in its sole discretion, that it no longer wishes to proceed with the Project pursuant to the terms of this Agreement, Owner may terminate this Agreement by providing the City with 30 days written notice. Notwithstanding this or other provisions herein, Owner's indemnity and defense obligations shall survive such termination. LITIGATION. 7.1. Third -Party Litigation Concerning Agreement. Owner shall defend, at its expense, including attorneys' fees, indemnify, and hold harmless City, its agents, officers and employees from any claim, action or proceeding against City, its agents, officers, or employees to attack, set aside, void, or annul the approval of this Agreement, or the approval of any permit or entitlement granted pursuant to this Agreement or for the Project. City shall promptly notifv ylE 11 B-34 Owner of any claim, action, proceeding or determination included within this Section 7.1, and City shall cooperate in the defense. If City fails to promptly notify Owner of any such claim, action, proceeding or determination, or if City fails to cooperate in the defense, Owner shall not thereafter be responsible to defend, indemnify, or hold harmless City as to that claim, action, proceeding, or determination. City may in its discretion participate in the defense. 7.2. Environmental Assurances. Owner shall indemnify and hold City, its officers, agents, and employees free and harmless from any liability, based or asserted, upon any act or omission of Owner, its officers, agents, employees, subcontractors, predecessors in interest, successors, assigns and independent contractors for any violation of any federal, state or local law, ordinance or regulation relating to industrial hygiene or to environmental conditions on, under or about the Property, including, but not limited to, soil and groundwater conditions, and Owner shall defend, at its expense, including attorneys' fees, City, its officers, agents and employees in any action based or asserted upon any such alleged act or omission. City may in its discretion participate in the defense. 7.3. Reservation of Rights. With respect to Section 7.1 and Section 7.2 herein, City reserves, the right to either (1) approve the attorney(s) that the indemnifying party selects, hires or otherwise engages to defend the indemnified party hereunder, which approval shall not be unreasonably withheld, conditioned, or delayed, or (2) conduct its own defense; provided, however, that the indemnifying party shall reimburse the indemnified party forthwith for any and all reasonable expenses incurred for such defense, including attorneys' fees, upon billing and accounting therefor. 7.4. Challenge to Existing Land Use Approvals. By accepting the benefits of this Agreement, Owner, on behalf of itself and its successors in interest, hereby expressly agrees and covenants not to sue or otherwise challenge any land use approval affecting the Property and in effect as of the Effective Data Such agreement and covenant includes, without limitation, the covenant against any direct suit by Owner or its successor in interest, or any participation, encouragement or involvement whatsoever that is adverse to City by Owner or its successor in interest, other than as part of required response to lawful orders of a court or other body of competent jurisdiction. Owner hereby expressly waives, on behalf of itself and its successors in interest, any claim or challenge to any land use approval affecting the Property and in effect as of the Effective Date. 7.5. Waiver. 7.5.1. Owner hereby acknowledges that it has read and is familiar with the provisions of California Civil Code Section 1542, which is set forth below: "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR." _22_ 11 B-35 7.5.2. By initialing below, Owner hereby waives the provisions of Section 1542 in connection with the matters that arc the subject of the foregoing waivers and releases. Owner's Initials 7.6. Survival. The provisions of Sections 7.1 through 7.4, inclusive, shall survive the termination of this Agreement. 8. MORTGAGEE PROTECTION. The Parties hereto agree that this Agreement shall not prevent or limit Owner, in any manner, at Owner's sole discretion, from encumbering the Property or any portion thereof or any improvement thereon by any mortgage, deed of trust or other security device securing financing with respect to the Property. City acknowledges that the lenders providing such financing may require certain Agreement interpretations and modifications and agrees upon request, from time to time, to meet with Owner and representatives of such lenders to negotiate in good faith any such request for interpretation or modification. City will not unreasonably withhold its consent to any such requested interpretation or modification provided such interpretation or modification is consistent with the intent and purposes of this Agreement. Anv Mortgagee of the Property shall be entitled to the following rights and privileges: 8.1. Neither entering into this Agreement nor a breach of this Agreement shall defeat, render invalid, diminish or impair the lien of any mortgage on the Property made in good faith and for value, unless otherwise required by law. 8.2. The Mortgagee of any mortgage or deed of trust encumbering the Property, or any part thereof, which Mortgagee, has submitted a request in writing to the City in the manner specified herein for giving notices, shall be entitled to receive written notification from City of any default by Owner in the performance of Owner's obligations under this Agreement. 8.3. If City timely receives a request from a Mortgagee requesting a copy of any notice of default given to Owner under the terms of this Agreement, City shall provide a copy of that notice to the Mortgagee within ten (10) days of sending the notice of default to Owner. The Mortgagee shall have the right, but not the obligation, to cure the default during the remaining cure period allowed such party under this Agreement. 8.4. Any Mortgagee who comes into possession of the Property, or any part thereof, pursuant to foreclosure of the mortgage or deed of trust, or deed in lieu of such foreclosure, shall take the Property, or part thereof, subject to the terms of this Agreement. Notwithstanding any other provision of this Agreement to the contrary, no Mortgagee shall have an obligation or duty under this Agreement to perform any of Owner's obligations or other affirmative covenants of Owner hereunder, or to guarantee such performance; provided, however, that to the extent that any covenant to be performed by Owner is a condition precedent to the performance of a covenant by City, the performance thereof shall continue to be a condition precedent to City's performance hereunder, and further provided that any sale, transfer or assignment by any Mortgagee in possession shall be subieet to the provisions of Section 2.5 of this Agreement. 9. MISCELLANEOUS PROVISIONS. -23- 11 B-36 9.1. Recordation of Agreement. This Agreement and any amendment or cancellation thereof shall be recorded with the Orange County Recorder by the Clerk of the City Council within ten (10) days after the City enters into this Agreement, in accordance with Section 65868.5 of the Government Code. If the Parties to this Agreement or their successors in interest amend or cancel this Agreement, or if the City terminates or modifies this Agreement as provided herein for failure of the Owner to comply in good faith with the terms and conditions of this Agreement, the City Clerk shall cause notice of such action recorded with the Orange County Recorder. 9.2. Entire Agreement. This Agreement sets forth and contains the entire understanding and agreement of the parties, and there are no oral or written representations, understandings or ancillary covenants, undertakings or agreements that arc not contained or expressly referred to herein. No testimony or evidence of any such representations, understandings or covenants shall be admissible in any proceeding of any kind or nature to interpret or determine the terms or conditions of this Agreement. 9.3. Severability. If any term, provision, covenant or condition of this Agreement shall be determined invalid, void or unenforceable, the remainder of this Agreement shall not be affected thereby to the extent such remaining provisions arc not rendered impractical to perform taking into consideration the purposes of this Agreement. Notwithstanding the foregoing, the provision of the Public Benefits set forth in Section 4 of this Agreement, including the payment of the Development Impact Fees set forth therein, arc essential elements of this Agreement and City would not have entered into this Agreement but for such provisions, and therefore in the event such provisions arc determined to be invalid, void or unenforceable, this entire Agreement shall be null and void and of no force and effect whatsoever. 9.4. Interpretation and Goveming Law. This Agreement and any dispute arising hereunder shall be governed and interpreted in accordance with the laws of the State of California, with venue in Orange County. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be employed in interpreting this Agreement, all parties having been represented by counsel in the negotiation and preparation hereof. 9.5. Section Headings. All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this Agreement. 9.6. Singular and Plural. As used herein, the singular of any word includes the plural. 9.7. Joint and Several Obligations. If at any time during the Term of this Agreement the Property is owned, in whole or in part, by more than one owner, all obligations Of such owners under this Agreement shall be joint and several, and the default of any such owner shall be the default of all such owners. Notwithstanding the foregoing, no owner of a single lot that has been finally subdivided and sold to such owner as a member of the general public shall have any obligation under this Agreement except as expressly provided for herein. 9.8. Time of Essence. Time is of the essence in the performance of the provisions of this Agreement as to which time is an element. 9.9. Waiver. Failure by a party to insist upon the strict performance of any of the provisions of this Agreement by the other party, or the failure by a party to exercise its rights upon the -24- 11 B-37 default of the other party, shall not constitute a waiver of such party's right to insist and demand strict compliance by the other party with the terms of this Agreement thereafter. 9.10. No Third -Party Beneficiaries. This Agreement is made and entered into for the sole protection and benefit of the parties and their successors and assigns. No other person shall have any right of action based upon any provision of this Agreement. 9.11. Force Maicure. Neither party shall be deemed to be in default where failure or delay in performance of any of its obligations under this Agreement is caused by: (1) strikes, lockouts or labor disputes; (2) inability to obtain labor or materials or reasonable substitutes therefor; (3) inclement weather which delays or precludes construction; (4) acts of God, including but not limited to earthquakes, or the public enemy or civil commotion; (5) condemnation, (6) fire or other casualty; (7) shortage of fuel, electricity or natural gas; (8) action or nonaction of public utilities or of local, state or federal governments, affecting the work, including, but not limited to, any delays in the permitting process as a result of the action or inaction or such governmental authorities; (9) criminal acts or acts of terrorism; or (10) other conditions similar to those enumerated above which are beyond the reasonable anticipation or control of such Party, or other causes beyond the Party's reasonable control. if any such events shall occur, the term of this Agreement and the time for performance shall be extended for the duration of each such event , provided that the Term of this Agreement shall not be extended pursuant to this section for more than five (5) years. 9.12. Mutual Covenants. The covenants contained herein are mutual covenants and also constitute conditions to the concurrent or subsequent performance by the party benefited thereby of the covenants to be performed hereunder by such benefited party. 9.13. Successors in Interest. The burdens of this Agreement shall be binding upon, and the benefits of this Agreement shall inure to, all successors in interest to the Parties to this Agreement. All provisions of this Agreement shall be enforceable as equitable servitudes and constitute covenants running with the land. Each covenant to do or refrain from doing some act hereunder with regard to development of the Property: (a) is for the benefit of and is a burden upon every portion of the Property; (b) runs with the Property and each portion thereof; and (c) is binding upon each party and each successor in interest during ownership of the Property or any portion thereof. 9.14. Counterparts. This Agreement may be executed by the parties in counterparts, which counterparts shall be construed together and have the same effect as if all of the parties had executed the same instrument. 9.15. Jurisdiction and Venue. Any action at law or in equity arising under this Agreement or brought by a party hereto for the purpose of enforcing, construing or determining the validity of any provision of this Agreement shall be filed and tried in the Superior Court of the County of Orange, State of California, and the parties hereto waive all provisions of law providing for the filing, removal or change of venue to any other court. 9.16. Project as a Private Undertaking. It is specifically understood and agreed by and between the parties hereto that the development of the Project is a private development, that neither party is acting as the agent of the other in any respect hereunder, and that each party is an independent contracting entity with respect to the terms, covenants and conditions contained in this Agreement. No partnership, joint venture or other association of any kind is formed by -25- 11 B-38 this Agreement. The only relationship between City and Owner is that of a government entity regulating the development of private property and the owner of such property. 9.17. Further Actions and Instruments. Each of the Parties shall cooperate with and provide reasonable assistance to the other to the extent contemplated hereunder in the performance of all obligations under this Agreement and the satisfaction of the conditions of this Agreement. Upon the request of either party at any time, the other party shall promptly execute and file or record such required instruments and writings and take any actions as may be reasonably necessary under the terms of this Agreement to carry out the intent and to fulfill the provisions of this Agreement or to evidence or consummate the transactions contemplated by this Agreement. 9.18. Eminent Domain. No provision of this Agreement shall be construed to limit or restrict the exercise by City of its power of eminent domain. 9.19. Agent for Service of Process. In the event Owner is not a resident of the State of California or it is an association, partnership or joint venture without a member, partner or joint venturer resident of the State of California, or it is a foreign corporation, then in any such event, Owner shall file with the City Manager, upon its execution of this Agreement, a designation of a natural person residing in the State of California, giving his or her name, residence and business addresses, as its agent for the purpose of service of process in any court action arising out of or based upon this Agreement, and the delivery to such agent of a copy of any process in any such action shall constitute valid service upon Owner. If for any reason service of such process upon such agent is not feasible, then in such event Owner may be personally served with such process and such service shall constitute valid service upon Owner. Owner is amenable to the process so served, submits to the jurisdiction of the Court so obtained and waives any and all objections and protests thereto. 9.20. Certificate of Compliance. At any time during the term of this Agreement, any lender or either Party may request either Party to this Agreement to confirm that (1) this Agreement is unmodified and in full force and effect (or if there have been modifications hereto, that this Agreement is in full force and effect as modified and stating the date and nature of such modifications); (2) to the best of such Party's knowledge, no defaults exist under this Agreement or if defaults do exist, to describe the nature of such defaults; and (3) any other information reasonably requested. Each Party hereby agrees to provide a Certificate to such lender or other Party within thirty (30) days of receipt of the written request therefor. 9.21. Authority to Execute. The person or persons executing this Agreement on behalf of Owner warrants and represents that he or she/they have the authority to execute this Agreement on behalf of his or her/their corporation, partnership or business entity and warrants and represents that he or she/thcy has/have the authority to bind Owner to the performance of its obligations hereunder. [Signatures on following Pagesl -26- 11 B-39 IN WITNESS WHEREOF, the parties hereto have executed this Development Agreement on the last day and year set forth below. Owner [Owner ENTITY], a ]PLACE OF INCORPORATION] limited liability company By: [FULL LEGAL NAME OF ENTITY] Its: Manager Dated: City City OF SANTA ANA, a California municipal corporation M Mayor Dated: ATTEST: By: City Clerk APPROVED AS TO LEGAL FORM: BEST BEST & KRIEGER LLP City Attorney IYAFA 11 B-40 55394.00053\3 1891805.5 EXHIBIT "A" (Legal Description of the Property) 11 B-41 55194.00051V 1891805.5 EXHIBIT `B" (Map or the Property) 11 B-42 EXHIBIT "C" Development Plans Development Plans and entitlement applications as presented in the City Staff Report Dated _ are incorporated herein by reference. Project entitlements and applications include, but may not be limited to the following entitlements: 1. The City's General Plan as amended. 2. The Final Environmental Impact Report entitled "Fashion Square Commercial Center Subsequent Final Environmental Impact Report' (State Clearinghouse House No. M and City of Santa Ana DP No. 2'L" ("FEIR") 3. The 1996 Addendum to the FEIR (State Clearinghouse House No. and City of Santa Ana DP No. "9) 4. The 2019 Addendum to the FEIR (State Clearinghouse House No. and City of Santa Ana DP No. ) 5. The "MainPlace Mall" Specific Plan, dated May 2019, adopted by the City Council on 0 55394.00053V 1891805.5 11 B-43 EXHIBIT "D" Development Impact Fees (Estimated) The estimated amount of Development Impact Fees associated with the project based upon the site plan documentation submitted as part of the Project Approvals include but are not limited to the following fees and deposits; applicable sewer fee, street fee, storm drain fee, traffic fee, deposits, and all applicable fees associated with demolition of existing structures, drainage, site development, and construction are based on actual square footage of any commercial development and number of residential units. Based on the development contemplated by the Development Plans identified in Exhibit "C," the Development Impact Fees are estimated at: Fee Estimated Total Sewer Capital Facilities Capacity Charges (Orange Countv Sanitation District Charges) Storm Drain Traffic Parks & Recreation Fire Facilities Fee Santa Ana Unificd/Orange Unified School Fees Estimated Total 55394.00053U 1891803.5 11 B-44 EXHIBIT "E" Assignment and Assumption Agreement (follows behind this cover page) 11 B-45 553 94.0005A1891805.14 EXHIBIT "F" 2018 Base Tax Year Values (follows behind this cover page) 11 B-46 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JUNE 18, 2019 TITLE: ORDINANCE SECOND READING: APPROVING AMENDMENT APPLICATION NO.2019-01 TO REZONE PROPERTY LOCATED AT 651 WEST SUNFLOWER AVENUE AND TO ADOPT SPECIFIC DEVELOPMENT NO. 94 (STRATEGIC PLAN NO. 5,1) i CITY M l' AGER RECOMMENDED ACTION Place ordinance on second reading and adopt. DISCUSSION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 161 Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER On June 4, 2019, the following ordinance was introduced for first reading and City Council authorized publication of title by a vote of 6-0: ORDINANCE NO. NS-2968 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING AMENDMENT APPLICATION NO. 2019-01 REZONING THE PROPERTY LOCATED AT 651 WEST SUNFLOWER AVENUE FROM SINGLE-FAMILY RESIDENTIAL (R-1) TO SPECIFIC DEVELOPMENT NO. 94 (SD-94) (AA NO. 2019-01) AND ADOPTING SPECIFIC DEVELOPMENT NO. 94 (SD-94) FOR SAID PROPERTY In summary, the Ordinance (Exhibit 1) changes the zoning designation of the Legacy at Sunflower development at 651 West Sunflower Avenue from Low -Density Residential to Specific Development No. 94. This approval will facilitate the development of a five -story, 226 apartment unit building with 452 parking spaces provided in a six -level parking structure with a partial subterranean level development on a 3.59-Acre parcel. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #5 - Community Health, Livability, Engagement & Sustainability, Objective #1 (Establish a comprehensive community engagement initiative to expand access to information and create opportunities for stakeholders to play an active role in discussing public policy and setting priorities). 11 C-1 Second Reading Ordinance: Amendment Application No. 2019-01 June 18, 2019 Page 2 FISCAL IMPACT There is no fiscal impact associated with this action. Norma Mitre Acting Clerk of the Council Exhibit: 1. Ordinance No. NS-2968 11 C-2 EXHIBIT 1 6.4.19 LS ORDINANCE NO. NS-XXXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING AMENDMENT APPLICATION NO. 2019-01 REZONING THE PROPERTY LOCATED AT 651 WEST SUNFLOWER AVENUE FROM SINGLE-FAMILY RESIDENTIAL (R-1) TO SPECIFIC DEVELOPMENT NO. 94 (SD-94) (AA NO. 2019-01) AND ADOPTING SPECIFIC DEVELOPMENT NO. 94 (SD-94) FOR SAID PROPERTY THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. Amendment Application No. 2019-01 has been filed with the City of Santa Ana to change the zoning designation of the parcel located at 651 West Sunflower Avenue from Single -Family Residence (R-1) to Specific Development No. 94 (SD-94) zoning designation described in Exhibit A. General Plan Amendment No. 2019-01 was filed concurrently with the Amendment Application for consistency with the General Plan. B. The zoning designation of the Specific Development No. 94 (SD-94) would facilitate the development of a 226-unit multiple -family residential community with private community space and supportive service offices and bring the rezoned property into consistency with the General Plan land use designation of Urban Neighborhood (UN). C. On April 22, 2019, the Planning Commission held a duly noticed public hearing. The public hearing was opened, public testimony was taken, and the public hearing was continued to May 13, 2019. D. On May 13, 2019, the Planning Commission held a duly noticed public hearing and voted to recommend that the City Council adopt an ordinance approving Amendment Application No. 2019-01 which is consistent with the General Plan, as amended by General Plan Amendment No. 2019-01. E. The City Council has reviewed applicable general plan policies and has determined that this proposed rezoning is consistent with the purpose of the General Plan. F. The City Council, prior to taking action on this ordinance, held a duly noticed public hearing on June 4, 2019. Ordinance No. NS-XXXX Page 1 of 6 11 C-3 G. The City Council also adopts as findings all facts presented in the Request for Council Action dated June 4, 2019 accompanying this matter. H. For these reasons, and each of them, Amendment Application No. 2019- 01 is hereby found and determined to be consistent with the intent and purpose of Chapter 41 of the Santa Ana Municipal Code, thus changing the zoning district is found to be consistent with the General Plan of the City of Santa Ana and otherwise justified by the public necessity, convenience, and general welfare. Section 2. The City Council of the City of Santa Ana hereby adopts an ordinance rezoning the real property located at 651 West Sunflower Avenue from Single -Family Residence (R-1) to Specific Development No. 94 (SD-94), (AA No. 2019-01). Amended Sectional District Map number 36-5-10 showing the above described change in use district designation, is hereby attached hereto as Exhibit B and incorporated by this reference as though fully set forth herein. This decision is based upon the evidence submitted at the above said hearing, which includes, but is not limited to: the Request for Council Action dated June 4, 2019, and exhibits attached thereto; and the public testimony, all of which are incorporated herein by this reference. Section 3. The City Council has independently reviewed and analyzed the information contained in the Initial Study and the Mitigated Negative Declaration (MND), Environmental Review No. 2018-75 and Mitigation Monitoring and Reporting Program, prepared with respect to this project. The City Council has, as a result of its consideration of the record as a whole and the evidence presented at the hearings on this matter, determined that, as required pursuant to the California Environmental Quality Act (CEQA) and the State CEQA Guidelines, Environmental Review No. 2018- 75 meets all the requirements of CEQA. Section 4. This ordinance shall not be effective unless and until Resolution No. 2019- (Environmental Review No. 2018-75 and General Plan Amendment No. 2019-01) and Ordinance No. 2019- (Amendment Application No. 2019-01) are adopted and become effective. If either resolution and/or ordinance are for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, or otherwise does not go into effect for any reason, then this ordinance shall be null and void and have no further force and effect. Section 5. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the ordinance. The City Council of the City of Santa Ana hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases or portions be declared invalid or unconstitutional. Ordinance No. NS-XXXX Page 2 of 6 11 C-4 Section 6. The Applicant shall indemnify, protect, defend and hold the City and/or any of its officials, officers, employees, agents, departments, agencies, authorized volunteers, and instrumentalities thereof, harmless from any and all claims, demands, lawsuits, writs of mandamus, and other and proceedings (whether legal, equitable, declaratory, administrative or adjudicatory in nature), and alternative dispute resolution procedures (including, but not limited to arbitrations, mediations, and such other procedures), judgments, orders, and decisions (collectively "Actions"), brought against the City and/or any of its officials, officers, employees, agents, departments, agencies, and instrumentalities thereof, that challenge, attack, or seek to modify, set aside, void, or annul, any action of, or any permit or approval issued by the City and/or any of its officials, officers, employees, agents, departments, agencies, and instrumentalities thereof (including actions approved by the voters of the City) for or concerning the project, whether such Actions are brought under the Ralph M. Brown Act, California Environmental Quality Act, the Planning and Zoning Law, the Subdivision Map Act, Code of Civil Procedure sections 1085 or 1094.5, or any other federal, state or local constitution, statute, law, ordinance, charter, rule, regulation, or any decision of a court of competent jurisdiction. It is expressly agreed that the City shall have the right to approve, which approval will not be unreasonably withheld, the legal counsel providing the City's defense, and that Applicant shall reimburse the City for any costs and expenses directly and necessarily incurred by the City in the course of the defense. City shall promptly notify the Applicant of any Action brought and City shall cooperate with Applicant in the defense of the Action. ADOPTED this day of , 2019. APPROVED AS TO FORM: Sonia R. Carvalho City (Attto(rney By: C��k-r Lisa 'Storck Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers fi�r�:3�.9�►���Z�IRd.TIG'iTa'ii1C�-'� Miguel A. Pulido Mayor Ordinance No. NS-XXXX Page 3 of 6 11 C-5 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, NORMA MITRE, Acting Clerk of the Council, do hereby attest to and certify that the attached Ordinance No. NS- to be the original ordinance adopted by the City Council of the City of Santa Ana on 2019 and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: Acting Clerk of the Council City of Santa Ana Ordinance No. NS-XXXX Page 4 of 6 11 C-6 SPECIFIC DEVELOPMENT PLAN NO. 94 Legacy Partners 651 Sunflower Apartments ("Legacy Sunflower") SECTION 1- APPLICABILITY OF ORDINANCE The Specific Development zoning district No. 94 (SD-94) for the Legacy Partners 651 Sunflower Apartments project is authorized by Chapter 41, Division 26 Section 41-593 et seq. of the Santa Ana Municipal Code. SD No. 94 contains the specific standards and regulations contained in the residential district, as herein amended, for the purpose of establishing land use regulations and standards. All other applicable chapter, articles, and sections of the Santa Ana Municipal Code are in effect unless expressly superseded by regulations contained in this ordinance. SECTION 2- PURPOSE The Specific Development Plan No. 94 for the Legacy Partners 651 Sunflower Apartments project consists of standards and regulations established for the purpose of protecting the health, safety, and general welfare of the people of Santa Ana by promoting and enhancing the value of property and encouraging the orderly development of property. The Legacy Partners 651 Sunflower Apartments project Specific Plan Development Plan No. 94 (SD-94) sets forth the development and design criteria for a development consisting of approximately 3.59 acres. The purpose of this specific development plan is to permit flexibility in site planning and design to respond to market conditions while assuring high quality development. SD No. 94 specifically establishes for the property the following: • Permitted Uses • Development Standards, including building heights limits, required setbacks, parking requirements, landscaping provisions and enforcement policies. • Publicly accessible plaza requirements • Maximum development intensity Objectives The objectives of the Legacy Partners 651 Sunflower project specific development plan include provision of the following: 1. Development of a multi -family residential project in an area that has a significant amount of office, commercial and retail uses within close proximity to the site via the Bristol and Main Street arterials. 2. Promotion of the City's image as providing high quality residential projects for individuals and families in all income groups. 3. A clean and safe environment for the City's residents, workers and visitors. Exhibit A Pagel of 6 11 C-7 Specific Development No. 94 Legacy Sunflower 4. A visually harmonious development as viewed both internally and externally. S. Flexibility in development in response to market conditions while achieving overall City and community goals. SECTION 3 - Uses permitted in Specific Development Plan No. 94 The following uses are permitted in SD-94 district: (a) One (1) Multiple -family development containing no more than 226 residential units, inclusive of any onsite manager unit(s) (b) Resident -serving, private amenities (e.g. leasing office, club room, fitness center, etc.) SECTION 4 - Uses subject to a conditional use permit in Specific Development No. 94 Not applicable SECTION 5 - Maximum permitted floor area ratio (FAR The maximum authorized building intensity for the Legacy Partners 651 Sunflower Apartments project is a floor area ratio (FAR) of 1.81, including residential areas, community serving areas (e.g. leasing office, fitness center, club room, rooftop patios) and interior corridors exclusive of the parking structure. SECTION 6 - Minimum lot area in Specific Development No. 94 The developable lot for the project shall have a minimum lot area of 3.00 net acres. SECTION 7 - Minimum street frontage in Specific Development No 94 The minimum street frontage on Sunflower Avenue shall be 550 feet. SECTION 8 - Building height in Specific Development No 94. No structure shall exceed 75 feet in height, as measured from the lowest adjacent grade of a structure to the top of a structure. SECTION 9 - Development Standards in Specific Development No. 94. The Legacy Sunflower development shall be built as shown on the approved project plans as per Development Project No. 2018-19. The plans shall govern in the event there is a conflict between the SD with the project plans. In addition, the following standards are applicable to the project: Exhibit A Page 2 of 6 11 C-8 Specific Development No. 94 Legacy Sunflower (a) Setbacks. (1) A minimum setback of nine (9) feet shall be provided between the property line and buildings on Sunflower Avenue (2) A minimum setback of forty-three (43) feet shall be provided between the interior side property lines and buildings (3) A minimum setback of thirty-five (35) feet shall be provided between the rear property line and buildings (b) Parking. The minimum off-street parking requirements for the project are as follows: Two (2) stalls per dwelling unit, inclusive of guest parking. (1) A parking management plan must be submitted to the City for review prior to permit issuance for any above -ground structures. The parking management plan must be approved prior to issuance of the projects certificate of occupancy. The parking management plan must detail how residential parking will be assigned, detail operations of any proposed onsite valet services, and contain best management practices to address any reallocations of onsite parking that may be required. (c) Pedestrian Walkways and Open Space. The project will provide a minimum of 200 square feet per unit of private (per unit) open space and common - private open space on the development site. (d) Walls/Fences. (1) A solid block wall with a minimum height of seven (7) feet shall be constructed along the eastern interior property line adjacent to residential developments. The block wall shall be designed to contain a decorative cap, regularly -spaced decorative pilasters, and a decorative finish in accordance to the design provisions contained within the most recent version of the City's design guidelines. (2) A wrought iron or similar fence shall be constructed along the northern property line with necessary vehicular access points for elementary school drop-off. (3) A wrought iron or similar fence shall be constructed along a portion of the western property line adjacent to the storm drain channel. (4) Additional glass enclosures may be added to ground level patios along (1) Sunflower to mitigate sound and/or provide security and privacy. The maximum height of said patio walls, inclusive of opaque and transparent elements, is five (5) feet in height. (e) Landscaping. Detailed landscaping plans shall be submitted to and be approved by the City of Santa Ana Planning Division prior to issuance of a building permit and Exhibit A Page 3 of 6 11 C-9 Specific Development No. 94 Legacy Sunflower installed as required in the approved plans. Final landscape plan design shall conform to the standards and guidelines contained within the most recent version of the City's design guidelines. The landscape plan shall include approximately 15 percent open space (courtyards, common area amenities, perimeter plaza and open space) within the project site including the club room, courtyards, rooftop decks.) The landscape plan shall contain planting details, irrigation plans, and hardscape, furniture, and lighting details. (f) Architecture and Design Features. (1) Exterior materials. Exterior materials and finishes for the project shall comply with the approved materials board submitted for the project during Building Division plan check All trash enclosures and similar ancillary structures shall match the texture, material and color of the building. (2) Hardscape materials. Enhance paving materials shall be installed at the project main entrance and driveway entrances. The actual paving materials shall be approved by the Planning Division. (3) Lighting standards/fixtures. The light fixtures are to integrate design elements of the building and landscape architecture. Lighting is to be designed to confine the direct rays of the artificial lighting within the boundaries of the development. Specifications of light standards/fixtures and photometrics plan shall be submitted to Planning Division for approval. (g) Mechanical Equipment. Appurtenances. and Conduits. All mechanical equipment and all supporting appurtenances and conduits shall be screened from view inside walls, behind parapets, or through a combination of landscape and hardscape materials. (h) Public Art. Public art shall be provided on the development site at a value of one-half percent (0.5%) of the building's valuation, inclusive of the residential and parking structure components. A public art plan shall be submitted to the City of Santa Ana Planning Division for review and approval prior to permit issuance for any above -ground construction on the project site. (i) Maintenance Agreement. Prior to the issuance of a building permit, a Property Maintenance Agreement must be recorded against the property. The agreement will be subject to review and applicability by the Planning and Building Agency, the Community Development Agency, the Public Works Agency, and the City Attorney to ensure that the property and all improvements located thereupon are properly maintained, Developer (and the owner of the property upon which the authorized use and/or authorized improvements are located if different from Exhibit A Page 4 of 6 11C-10 Specific Development No. 94 Legacy Sunflower the Applicant) shall execute a maintenance agreement with the City of Santa Ana which shall be recorded against the property and which shall be in a form reasonably satisfactory to the City Attorney. The maintenance agreement shall contain covenants, conditions and restrictions relating to the following: (a) Compliance with operational conditions applicable during any period(s) of construction or major repair (e.g., proper screening and securing of the construction site; implementation of proper erosion control, dust control and noise mitigation measure; adherence to approved project phasing etc.); (b) Compliance with ongoing operational conditions, requirements and restrictions, as applicable (including but not limited to hours of operation, security requirements, the proper storage and disposal of trash and debris, enforcement of the parking management plan, and/or restrictions on certain uses, (c) Ongoing compliance with approved design and construction parameters, signage parameters and restrictions as well as landscape designs, as applicable; (d) Ongoing maintenance, repair and upkeep of the property and all improvements located thereupon (including but not limited to controls on the proliferation of trash and debris about the property; the proper and timely removal of graffiti; the timely maintenance, repair and upkeep of damaged, vandalized and/or weathered buildings, structures and/or improvements; the timely maintenance, repair and upkeep of exterior paint, parking striping, lighting and irrigation fixtures, walls and fencing, publicly accessible bathrooms and bathroom fixtures, landscaping and related landscape improvements and the like, as applicable); (e) If Developer and the owner of the property are different (e.g., if the Applicant is a tenant or licensee of the property or any portion thereof), both the Applicant and the owner of the property shall be signatories to the maintenance agreement and both shall be jointly and severally liable for compliance with its terms. (f) The maintenance agreement shall further provide that any party responsible for complying with its terms shall not assign its ownership interest in the property or any interest in any lease, sublease, license or sublicense, unless the prospective assignee agrees in writing to assume all of the duties and obligations and responsibilities set forth under the maintenance agreement. (g) The maintenance agreement shall contain provisions relating to the enforcement of its conditions by the City and shall also contain provisions Exhibit A Page 5 of 6 11C-11 Specific Development No. 94 Legacy Sunflower authorizing the City to recover costs and expenses which the City may incur arising out of any enforcement and/or remediation efforts which the City may undertake in order to cure any deficiency in maintenance, repair or upkeep or to enforce any restrictions or conditions upon the use of the property. The maintenance agreement shall further provide that any unreimbursed costs and/or expenses incurred by the City to cure a deficiency in maintenance or to enforce use restrictions shall become a lien upon the property in an amount equivalent to the actual costs and/or expense incurred by the City. (h) The execution and recordation of the maintenance agreement shall be a condition precedent to the issuance of final approval for any construction permit related to this entitlement. Exhibit A Page 6 of 6 11C-12 Ot R1 7nNIWr, I7ISTRIrTC S 4-E AV 4 0.1 g Rt W CMOI AV xFMEVAV 0.+ W a C__ nRPI1.OR ,� g EEIJY'a x gR+ caywwE.x R+ 0.YNnmE R1 d' <MuwixEAv R'-AV x R+ q fl1 .ELLAV { a R1 AErxEAv AsrAV AV WE .uwe AV R1 urWE AV R+ P+ R+ C$ WMACARTHUR BLVD R1 RIFRD RI-0RD I...ER.v WIFAAV O Yi ypp Av C$ t � �- ° E 3 ppldR W e �xLR vc ~ Pt-P0.0 fl1 N R1 W y R1 a Pl~ R.xr Av Nwrx..x AYRYRAAx 3 9 3' ax ...V °R : kt4'VyF RA AV e; R, 0a R1 g R+ ^ g ¢A EUFP AV R+ AELLERAV R1 FA - R1 ft1 R+E. i flt xoREc� aR; E sAv RI • s V 11—A AV �R+EA Av...-.._..-..-..-..-..-..-..-..-..-.......- a At GENERALAGRDULTURAL CSM SOUTH MAN STREET COMMERCIAL DIST. R2 TWO-FAMLYRESDENCE -B PARKNGMODIFICATION Cl COMMUNITY COMMERCIAL GC GOVERNMENTCENTER R3 MULTPLE-FAMLY RESIDENCE -OZ OVERLAY ZONE C1MD COMMUNITY COMMERCIAL - MUSEUM DIST. Al LIGHT NDUSTRWL R4 SUBURBANAPARTMENT PLANNEDRESDENTNL DEVELOPMENT C2 GENERAL COMMERCIAL M2 INDUSTRIAL HEAVY DUSTRIAL RE RESIDENTIAL ESTATE C4 PLANNED SHOPPING CENTER 0 OPEN SPACE SO SPECFD DEVELOPMENT -HD2 HEIGHT DISTRICT C5 ARTERIAL COMMERCIAL P PROFESSDNAL SP SPECFD PLAN CR COMMERCIALRESDENTIAL RI SNGLE-FAMLYRESDENCE JWN SECTIONAL DISTRICT MAP: 36-5-10 MIN I NW CITY OF SANTA ANA. CALIFORNIA Exhibit: 11C-13 11C-14 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JUNE 18, 2019 TITLE: APPROVE AN AGREEMENT WITH COMMUNITY SENIORSERV INC. FOR SENIOR MEALS PROGRAMS IN AMOUNT NOT TO EXCEED $90,290 FOR THE PERIOD JULY 1, 2019 TO JUNE 30, 2020 (STRATEGIC PLAN NO. 6, 6E) CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 181 Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER CITY M NAGER RECOMMENDED ACTION Authorize the City Manager and Clerk of the Council to execute an agreement with Community SeniorServ, Inc. for Senior Meals Programs in the amount not to exceed $90,290 for the term July 1, 2019 to June 30, 2020 to be funded with General Funds, subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION Community SeniorServ, Inc. provides the Meals on Wheels and Senior Lunch programs to the City of Santa Ana. The Meals on Wheels program prepares and delivers three meals daily directly to the homes of homebound, frail, and socially isolated seniors in the City. A registered dietician plans the meals to assure 100% of the U. S. Nutritional Recommended Daily Allowance - consisting of breakfast, a cold lunch, and a frozen dinner. In addition to meals, clients benefit from daily contact with delivery staff as well as the calls and/or visits from caseworkers who regularly check on their well-being. The Senior Lunch Program helps alleviate poor nutrition among the elderly population, especially prevalent among those who live alone and/or on a limited income. This nutrition program is available at two sites in Santa Ana (Santa Ana Senior Center and Southwest Senior Center) seeks to enhance the physical and mental well-being of the elderly population by: • Encouraging a sense of dignity; • Providing stimulating activities and volunteer opportunities; and • Augmenting participants' financial resources by providing donation -based meals. 25A-1 Agreement with Community SeniorServ, Inc. for Senior Meals Program June 18, 2019 Page 2 As part of the Fiscal Year 2019-20 budget process, $90,290 in general fund monies was proposed to be included in the Parks, Recreation and Community Services Agency's budget to provide these programs to Santa Ana seniors. STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #5 - Community Health, Livability, Engagement & Sustainability, Objective #6 (Focus projects and programs on improving the health and wellness of all residents), Strategy E (Expand Senior Center programming to provide greater enrichment and explore activities in art, culture and health). FISCAL IMPACT Funds will be budgeted and made available in the following account for the specified year: Fiscal Accounting Fund Accounting Unit, Account Amount Year Unit -Account# Description Description FY 19-20 01113230- General Fund PRCSA-Recreation & Comm. Svc, $90,290 62300 Contractual Services -Professional Parks, Recreation and Community Services Agency Exhibit: 1. Agreement APPROVED AS TO FUNDS AND ACCOUNT: 46*�� " Kathryn D n�PA Executive Director Finance and Management Services Agency 25A-2 EXHIBIT 7 AGREEMENT BETWEEN THE CITY OF SANTA ANA AND COMMUNITY SENIORSERV, INC. FOR THE PROVISION OF HOME DELIVERED MEALS PROGRAM SERVICES THIS AGREEMENT is hereby made and entered into this 181" day of June, 2019, by and between the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("City"), and Community SeniorServ, Inc., a California nonprofit corporation ("Provideel. RECITALS A. The City desires to retain Provider to participate in delivering meals to homebound senior residents and providing meals for senior residents at City senior centers. C. In undertaking the performance of this Agreement, Provider represents that it is knowledgeable in its field and that any services performed by Provider under this Agreement will be performed in compliance with such standards as may reasonably be expected from a professional firm in the field. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions hereinafter set forth, the parties agree as follows: 1. SCOPE OF SERVICES Provider shall deliver once a day, two meals to City senior residents at City Senior Centers ("Congregate Lunch Program"). Provider shall also deliver once a day, three meals to the homes of City senior residents that are homebound ("Home Delivered Meal Program"). Pursuant to these two programs, Provider will serve a minimum of 750 total unduplicated Santa Ana participants. All participants in the program will be enrolled through the City of Santa Ana Parks, Recreation and Community Services Agency. Programs shall operate as outlined in the attached Exhibit A. 2. COMPENSATION a. City agrees to pay, and Provider agrees to accept as total payment for its services, the sum of $90,290.00. The total sum to be expended under this Agreement shall not exceed this amount during the term of this Agreement. Each quarterly payment pursuant to this Agreement shall be $22,572.50 and paid pursuant to the quarterly invoice schedule set forth in the attached Exhibit A. b. City will be invoiced by Provider on a quarterly basis. Payment will be made within forty-five (45) days of the date of the invoice. Page I of 25A-3 EXHIBIT 7 3. TERM The tens of this Agreement shall commence on July 1, 2019 and terminate on June 30, 2020, unless terminated earlier in accordance with Section 13, below. 4. INDEPENDENT CONTRACTOR Provider shall, during the entire term of this Agreement, be construed to be an independent contractor and not an employee of the City. This Agreement is not intended nor shall it be construed to create an employer -employee relationship, a joint venture relationship, or to allow the City to exercise discretion or control over the professional manner in which Provider performs the services which are the subject matter of this Agreement; however, the services to be provided by Provider shall be provided in a manner consistent with all applicable standards and regulations governing such services. Provider shall pay all salaries and wages, employer's social security taxes, unemployment insurance and similar taxes relating to its employees and shall be responsible for all applicable withholding taxes. 5. INSURANCE Prior to undertaking performance of work under this Agreement, Provider shall maintain and shall require its subcontractors, if any, to obtain and maintain insurance as described below: a. Commercial General Liability Insurance. Provider shall maintain commercial general liability insurance which shall include, but not be limited to protection against claims arising from bodily and personal injury, including death resulting therefrom and damage to property, resulting from any act or occurrence arising out of Provider's negligent operations in the performance of this Agreement, including, without limitation, acts involving vehicles. The amounts of insurance shall be not less than the following: single limit coverage applying to bodily and personal injury, including death resulting therefrom, and property damage, in the total amount of$1,000,000 per occurrence and $2,000,000 in the aggregate. Such insurance shall (a) name the City, its officers, employees, agents, volunteers and representatives as additional insured(s); (b) be primary and not contributory with respect to insurance or self-insurance programs maintained by the City; and (c) contain standard separation of insured provisions. b. Business automobile liability insurance, or equivalent form, with a combined single limit of not less than $1,000,000 per occurrence. Such insurance shall include coverage for owned, hired and non -owned automobiles. c. Worker's Compensation Insurance. In accordance with California State law, Provider, if Provider has any employees, is required to be insured against liability for worker's compensation or to undertake self-insurance. Prior to commencing the performance of the work under this Agreement, Provider agrees to obtain and maintain any employer's liability insurance with limits not less than S 1,000,000 per accident. d. If Provider is or employs a licensed professional such as an architect or engineer: Professional liability (errors and omissions) insurance, with a combined single limit of not less than 51,000,000 per claim with 52,000,000 in the aggregate. Page 2 of 9 25A-4 EXHIBIT 1 e. The following requirements apply to the insurance to be provided by Provider pursuant to this section: (i) Provider shall maintain all insurance required above in full force and effect for the entire period covered by this Agreement. (H) Certificates of insurance shall be furnished to the City upon execution of this Agreement and shall be approved in form by the City. (iii) Certificates and policies shall state that the policies shall not be canceled or reduced in coverage or changed in any other material aspect without thirty (30) days prior written notice to the City. (iv) Provider shall supply City with fully executed additional insured endorsement. f. If Provider fails or refuses to produce or maintain the insurance required by this section or tails or refuses to furnish the City with required proof that insurance has been procured and is in force and paid for, the City shall have the right, at the City's election, to terminate this Agreement. Such termination shall not affect Provider's right to be paid for its time and materials expended prior to notification of termination. Provider waives the right to receive compensation and agrees to indemnify the City for any work performed prior to approval of insurance by the City. 6. INDEMNIFICATION Consultant agrees to defend, and shall indemnify and hold harmless the City, its officers, agents, employees, contractors, special counsel, and representatives from liability: (1) for personal injury, damages, just compensation, restitution, judicial or equitable relief arising out of claims for personal injury, including death, and claims for property damage, which may arise from the negligent operations of the Consultant, its subcontractors, agents, employees, or other persons acting on its behalf which relates to the services described in section 1 of this Agreement; and (2) from any claim that personal injury, damages, just compensation, restitution, judicial or equitable relief is due by reason of the terns of or effects arising from.this Agreement. This indemnity and hold harmless agreement applies to all claims for damages, just compensation, restitution, judicial or equitable relief suffered, or alleged to have been suffered, by reason of the events referred to in this Section or by reason of the terms of, or effects, arising from this Agreement. The Consultant further agrees to indemnify, hold harmless, and pay all costs for the defense of the City, including fees and costs for special counsel to be selected by the City, regarding any action by a third party challenging the validity of this Agreement, or asserting that personal injury, damages, just compensation, restitution, judicial or equitable relief due to personal or property rights arises by reason of the terms of, or effects arising from this Agreement. City may make all reasonable decisions with respect to its representation in any legal proceeding. Notwithstanding the foregoing, to the extent Consultant's services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Page 3 of 9 25A-5 EXHIBIT 1 Civil Code Section 2782.8, to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant. 7. RECORDS Provider shall keep records and invoices in connection with the work to be performed under this Agreement. Provider shall maintain complete and accurate records with respect to the costs incurred under this Agreement and any services, expenditures, and disbursements charged to the City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Provider under this Agreement. All such records and invoices shall be clearly identifiable. Provider shall allow a representative of the City to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement during regular business hours. Provider shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement for a period of three (3) years from the date of final payment to Provider under this Agreement. 8, CONFIDENTIALITY If Provider received from the City information which due to the nature of such information is reasonably understood to be confidential and/or proprietary, Provider agrees that it shall not use or disclose such information except in the performance of this Agreement, and further agrees to exercise the same degree of care it uses to protect its own information of like importance, but in no event less than reasonable care. "Confidential Information' shall include all nonpublic information. Confidential information includes not only written information, but also information transferred orally, visually, electronically, or by other means. Confidential information disclosed to either party by any subsidiary and/or agent of the other party is covered by this Agreement. The foregoing obligations of non-use and nondisclosure shall not apply to any information that (a) has been disclosed in publicly available sources; (b) is, through no fault of the Provider disclosed in a publicly available source; (c) is in rightful possession of the Provider and disclosed without an obligation of confidentiality; (d) is required to be disclosed by operation of law; or (e) is independently developed by the Provider without reference to information disclosed by the City. 9. CONFLICT OF INTEREST CLAUSE Provider covenants that it presently has no interest and shall not have interests, direct or indirect, which would conflict in any manner with performance of services specified under this Agreement. 10. NOTICE Any notice, tender, demand, delivery, or other communication pursuant to this Agreement shall be in writing and shall be deemed to be properly given if delivered in person or mailed by first class or certified mail, postage prepaid, sent by fax or other telegraphic communication in the manner provided in this Section, to the following persons: Page 4 of 9 25A-6 EXHIBIT 7 To City: City of Santa Ana City Clerk (M-30) 20 Civic Center Plaza P.O. Box 1988 Santa Ana, California 92702 With copy to: Executive Director of Parks, Recreation and Community Services City of Santa Ana 20 Civic Center Plaza (M-23) P.O. Box 1988 Santa Ana, California 92702 Fax (714) 571-4211 And: City Attorney City of Santa Ana 20 Civic Center Plaza (M-29) P.O. Box 1988 Santa Ana, California 92702 Fax (714) 647-6515 To Provider: Community SeniorServ, Inc. 1200 N. Knollwood Circle Anaheim, CA 92801 Fax (714) 220-1374 A party may change its address by giving notice in writing to the other party. Thereafter, any communication shall be addressed and transmitted to the new address. If sent by mail, communication shall be effective or deemed to have been given three (3) days after it has been deposited in the United States mail, duly registered or certified, with postage prepaid, and addressed as set forth above. If sent by facsimile, communication shall he effective or deemed to have been given twenty-four (24) hours after the time set forth on the transmission report issued by the transmitting facsimile machine, addressed as set forth above. For purposes of calculating these time frames, weekends, federal, state, County or City holidays shall be excluded. 11. EXCLUSIVITY AND AMENDMENT This Agreement represents the complete and exclusive statement between the City and Provider regarding the subject matter herein, and supersedes any and all other agreements, oral or written, between the parties. In the event of a conflict between the terms of this Agreement and any attachments hereto, the terms of this Agreement shall prevail and will serve to fully supersede existing Agreement. This Agreement may not be modified except by written instrument signed by the City and by an authorized representative of Provider. The parties agree that any terms or conditions of any purchase order or other instrument that are inconsistent with, or in addition to, that terms or conditions hereof, shall not bind or obligate Provider nor the City. Each party to this Agreement acknowledges that no representations, inducements, promises or Page 5 of 9 25A-7 EXHIBIT 7 agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any parties, which are not embodied herein. 12. ASSIGNMENT Inasmuch as this Agreement is intended to secure the specialized services of Provider, Provider may not assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the City and any such assignment, transfer, delegation or subcontract without the City's prior written consent shall be considered null and void. Nothing in this Agreement shall be construed to limit the City's ability to have any of the services that are the subject to this Agreement performed by City personnel or by other Providers retained by City. 13. TERMINATION This Agreement may be terminated by the City with thirty (30) days written notice of termination to the Provider. a. As a condition of such payment, the City may require Provider to deliver to the City all the work product completed as of such date, and in such case such work product shall be the property of the City unless prohibited by law, and Provider consents to the City's use thereof for such purposes as the City deems appropriate. b. Payment need not be made for work that fails to meet the standard of performance specified in the Recitals of this Agreement. 14. FINGERPRINTS AND BACKGROUND CHECK Provider, and any employees, subcontractors or volunteers, shall arrange for and submit their fingerprints for a criminal background check through the Department of Justice through the City's Human Resources Department process. Provider shall be responsible for all charges associated with fingerprinting. Provider shall not perform any services pursuant to this Agreement until clearance is received and Consultant is notified by the City's Parks, Recreation and Community Services Department. 15. NON-DISCRIMINATION Provider shall not discriminate because of race, color, creed, relation, sex, marital status, sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, training, utilization, promotion, termination or other employment related activities or any activities under this Agreement. Provider affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. Paee 6 of 9 25A-8 EXHIBIT 1 16. JURISDICTION - VENUE This Agreement has been executed and delivered in the State of California and the validity, interpretation, performance, and enforcement of any of the clauses of this Agreement shall be determined and governed by the laws of the State of California. Both parties further agree that Orange County, California, shall be the venue for any action or proceeding that may be brought or arise out of, in connection with or by reason of this Agreement. 17. PROFESSIONAL LICENSES Provider shall, throughout the term of this Agreement, maintain all necessary licenses, permits, approvals, waivers, and exemptions necessary for the provision of the services hereunder and required by the laws and regulations of the United Sates, the State of California, the City of Santa Ana and all other governmental agencies. Provider shall notify the City immediately and in writing of her inability to obtain or maintain such permits, licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of this Agreement. 18. MISCELLANEOUS PROVISIONS a. Each undersigned represents and warrants that its signature herein below has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify City fully, including reasonable costs and attomcy's fees, for any injuries or damages to City in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. b. All exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in the body of this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written. ATTEST: NORMA MITRE Acting Clerk of the Council APPROVED AS TO FORAI: SONIA R. CARVALHO City Attorney nn C_ Nyta tt . By: LAURA A. ROSSINI Senior Assistant City Attorney CITY OF SANTA ANA KRISTINE RIDGE City Manager [Signatures continue on the next page] Page 7 of 9 25A-9 EXHIBIT 1 RECOMMENDED FOR APPROVAL: LISA RUDLOFF Executive Director of Parks, Recreation and Community Services Agency Page 8 of COMMUNITY SENIORSERV, INC. By: Name:tG�y Title: 25A-10 EXHIBIT 7 EXHIBrr A SCOPE OF SERVICES AND FEES/COSTS Page 9 of 9 25A-11 EXHIBIT 1 City of Santa Ana Scope of Work Name of Organization Community SeniorSery Name of Funded Program Home Delivered and '----gate Meals Program Annual Accomplishment Goal I. Total number of unduplicated Participants (Santa Ana and Nan -Santa Ana participants) anticipated to be served by the funded program, named above, during the 12-month contract period. 8,500 Participants It. Number of ONLY unduplicated Santa Ana Participants to be served by the funded program, named above, during the 12-month contract period. 750 Participants Program and Funding Description III. Description of Work - In the space below, describe the program to be funded during the 12-manth contract period. What specific activities will be undertaken during the contract period. Please be concise in your response. Only the viewable space will print. For Fiscal Year 19-20, Santa Ana discretionary funds in the amount of $90,290 will be utilized to help fund the raw food costs of meals on wheels and congregate lunch meals to Santa Ana older adult participants from July 1, 2019-June 30, 2020. Home Delivered Meal Program: Participants in the Home Delivered Meals program will receive a total of 3 nutritious meals daily for 5 days a week delivered to their home and case management services. Meals will be delivered by paid and volunteer drivers. Efigibility and case mangement services will be provided by CSS Case Managers. Participants will also have access to other services at no charge including in -home services, respite services, home safety equipment, and other resources. Congregate Lunch Program: Participants in the Congregate Lunch program will be provided with a nutritional lunch five days a week at 2 sites in Santa Ana: Southwest Senior Center Santa Ana Senior Center Schedule of Performance Estimate the number of ONLY unduplicated Santa Ana participants to be served by the funded program during the 12- month contract period per quarter. (Enter number of new Santa Ana Participants served each quarter. If they were served in quarter 1 do not count them again in quarter 2 Quarter 1: July 1 - September 30 450 Participants Quarter 2: October i - December 31 150 Participants Quarter 3: January 1 - March 31 100 Participants Quarter 4: April 1 -June 30 50 Participants 750 Schedule of Invoicing Total unduplicated Santa Ana Participants to be served. Estimate the amount of grant funds to be requested during the 12-month contract period on a quarterly basis. Quarter 1: July 1 - September 30 ES202.,572.50 572.50 Quarter 2: October 1 - December 31 57250 Quarter 3: January 1 - March 31 572.50 Quarter 4: April 1 -June 30 290.00 Total Grant Exhibit A Page 1 of 1 25A-12 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JUNE 18, 2019 TITLE: APPROVE A 43-MONTH LEASE AGREEMENT WITH SENATE, CALIFORNIA LEGISLATURE, FOR OFFICE SPACE AT THE SANTA ANA REGIONAL TRANSPORTATION CENTER TOTAL REVENUE: $275,200 (STRATEGIC PLAN NO. 3, 2C) CITY MANOtR RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1n Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute a site lease agreement with Senate, California Legislature, to compensate the City $6,400 per month, with any partial month prorated at $206 per day, for the lease of 3,200 square feet of office space located at the Santa Ana Regional Transportation Center, for the 43-month term beginning on August 1, 2019, and ending February 28, 2023, for a total of $275,200 in lease revenue for the entire term of the agreement, subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION The Santa Ana Regional Transportation Center (SARTC) is a regional transportation hub that brings together Amtrak, Metrolink, Orange County Transportation Authority, and interstate bus services. In addition, when completed, the OC Streetcar will have a platform stop at SARTC. The facility is open to the public seven days a week from 5:00 a.m. to midnight, and contains approximately 35,000 square feet of total rental space, including ten bus bays. The State Senate's 34th District expressed interest in leasing approximately 3,200 square feet of office space at SARTC. The 34th District includes the cities of Anaheim, Fountain Valley, Garden Grove, Huntington Beach, Los Alamitos, Midway City, Orange, Rossmoor, Santa Ana, Seal Beach and Westminster in Orange County, as well as part of the City of Long Beach in Los Angeles County. Santa Ana is the Orange County seat, and is centrally located within Senate District 34. There are currently 3,200 square feet of available office space at SARTC. By leasing available office space to the Senate, lease revenue will be generated for the SARTC day-to-day operations. 25B-1 Approve Lease Agreement with Senate, CA Legislature for Office Space at the SARTC June 18, 2019 Page 2 The City will complete tenant improvements to provide a safe and efficient use of space for operations. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #3 - Economic Development, Objective #2 (create new opportunities for business/job growth and encourage private development through new General Plan and Zoning Ordinance policies), Strategy C (support business development and job growth along transit corridors through the completion of critical transit plans/projects including: The OC Streetcar Project, Santa Ana Regional Transportation Center Master Plan, Complete Streets and General Plan Circulation Element update). FISCAL IMPACT Approval of the site lease agreement obligates Senate, California Legislature, to compensate the City $76,800 annually for the lease of interior office space at the SARTC. The 43-month agreement term begins August 1, 2019, and ends February 28, 2023. The total anticipated revenue from this agreement is as follows: Agreement 43-Month Term FISCAL YEAR REVENUE 2019-20 $70,400 2020-21 $76,800 2021-22 $76,800 2022-23 $51,200 TOTAL $275,200 The proposed FY19-20 budget includes lease revenue in the amount of $70,400 into the PWA — SARTC Operations, Rental -Senate revenue account (No. 06717002-53827) and an appropriation of the same amount for expenditure as follows: Fiscal Accounting Unit Fund Accounting Unit -Account Year - Account No. Description No. Description Amount FY 2019-20 Jul -June y 06717650-62300 Regional Transportation PWA SARTC Operations — $70,400 Center Contract Services -Professional Total $70,400 25B-2 Approve Lease Agreement with Senate, CA Legislature for Office Space at the SARTC June 18, 2019 Page 3 APPROVED AS TO FUNDS AND ACCOUNTS: V /�ti�;64_, Fuad S. weiss, PE, PLS Kathryn Dowrfs, CPA Executiv Director Executive Director Public W rks Agency Finance and Management Services Agency FSSITC/MO/GL Exhibit: 1. Lease Agreement —Senate, CA Legislature 25B-3 25B-4 EXHIBIT I Senator Lease # SENATE, CALIFORNIA LEGISLATURE LEASE ALL INFORMATION REQUESTED IN THIS LEASE MUST BE COMPLETED PRIOR TO SIGNATURE OF THE SENATE RULES COMMITTEE: PREAMBLE - THIS LEASE, made and entered into this June 18, 2019, by and between the City of Santa Ana, a charter city and municipal corporation organized and existing the Constitution and laws of the State of California, hereinafter called Lessor, and the Senate Rules Committee, California Legislature, hereinafter called State. WITNESSETH: The parties hereto mutually agree as follows: 1. DESCRIPTION - Lessor hereby leases unto State and State hereby hires from Lessor those certain premises situated in the City of Santa Ana, County of Orange, State of California, and more particularly described as follows: a portion of the premises located at the Santa Ana Regional Transportation Center (SARTC), 1000 East Santa Ana Boulevard, consisting of 3,200 square feet of office space, as more particularly described on Exhibit A. State agrees to take possession of the leased premises in an AS -IS condition and further agrees that, except as specified in Paragraph 23, Lessor shall have no responsibility for any repairs or improvements to the leased premises, prior to, or as a condition of, State's occupation of the leased premises. 2. TERM - TO HAVE AND HOLD said leased premises, together with the appurtenance, rights, privileges, and easements thereunto belonging or appertaining unto State, for a term commencing August 1, 2019,.and ending on February 28, 2023, with such rights of termination as are hereinafter set forth. 3. RENT — The total amount to be paid is as follows: $2.00 PER SQUARE FOOT for 3,200 SQUARE FEET. TOTAL MONTHLY RENTAL:.$6,400- with rental payable by State in arrears on the last day of the month, unless sufficient funds have not been made available in the annual budget act for the purpose of funding Senate Rules Committee Lease agreements. Rental payments will be made as soon as funds are made available under the annual budget act. 4. PREPAYMENT DISCOUNT - State shall have the right during the term of this lease to prepay rent to Lessor in a lump sum payment for any portion of the lease term. If this lease is terminated for any reason authorized herein prior to the end of the period for which the State had made prepayment of rent, the Lessor shall refund to the State that portion of the State's prepaid rent which is attributable to that period which commences on the effective date of the earlier termination and ends on the expiration date of the period covered by the prepaid rent. Rental payable hereunder for any period of time less than that for which periodic rental is paid shall be determined by prorating the rental herein specified for the applicable period by 30 days. 25B-5 5. NOTICES TO STATE -State agrees to pay the aforesaid rental to Lessor at the address specified in Paragraph 6, or to such other address as the Lessor may designate by a notice in writing to: Senator Senate Rules Committee - Facilities, Cheryl N. Watts 1020 N Street, Room 255 Sacramento, CA 95814 Tel. 916/651-1505 fax 916/414-3690 6. NOTICES TO LESSOR - All notices herein provided to be given, or which may be given, by either party to the other, shall be deemed to have been fully given when made in writing and deposited in the United States mail, certified and postage prepaid, and addressed as follows: NAME: City of Santa Ana CONTACT: Executive Director, Public Works Agency ADDRESS: 20 Civic Center Plaza Santa Ana, CA 92702 With copy to Clerk of the Council (at same address) and to State at the address indicated in Paragraph 5. Nothing herein contained shall preclude the giving of any such written notice by personal service. 7. EARLY TERMINATION - The State may terminate this lease by giving notice to the Lessor at least thirty (30) days prior to the date when such termination shall become effective. At the option of the State, this lease shall terminate within thirty (30) days immediately following the death, resignation, or other removal from office of Thomas J. Umberg as a Member of the Senate. 8. JANITORIAL AND UTILITIES - Lessor shall furnish to State, during the lease term, at Lessor's sole cost, the following services and utilities: A. Janitorial services, including but not limited to, regular cleaning of office areas and restrooms, toilet supplies and waste disposal. B. All utilities except telephone and data/internet services/cable. 9. COMPLIANCE WITH LAW; REPAIR AND MAINTENANCE - During the lease term, Lessor shall maintain the leased premises together with appurtenances, rights, privileges, and easements belonging or appertaining thereto, in good repair and tenantable condition, except in the case of damage arising from negligence of State's agent, invitees, or employees. Lessor shall be liable for any damages sustained by State from the failure of the Lessor to maintain the leased premises in good repair and tenantable condition pursuant to this paragraph. 10. INSPECTION - Lessor reserves the right to enter and inspect the leased premises, at reasonable times, and to make any necessary repairs to the leased premises. 11. QUIET POSSESSION - Lessor agrees that State, keeping and performing the covenants and agreements herein contained on the part of State to be kept and performed, shall at all times during the existence of this lease peaceably and quietly, have hold and enjoy the leased premises, without suit, trouble, or hindrance from Lessor or any person claiming under Lessor. 12. DESTRUCTION - In the event the leased premises or any essential part thereof shall be destroyed by fire or other casualty, this lease, shall, in the case of total destruction of the leased premises, immediately terminate and, in case of partial destruction or damage, shall terminate at the option of State upon giving notice in .writing to the Lessor within fifteen (15) days after such fire or casualty, and no rent shall accrue or be payable to the Lessor after such termination. hm the event of any such destruction where the State remains in possession of said premises, the rental as herein r provided shall be reduced by the same ratio as the floor space State is thus precluded from occupying bears to the total space of the leased premises. 13. FAIR EMPLOYMENT PRACTICES - This lease is subject to the provisions of the California Fair Employment and Housing Act (Section 12900 et seq., Goverment Code) and in its performance the Lessor will not discriminate against any employee or applicant for employment because of race religious creed, color, national origin, ancestry, physical handicap, medical condition, marital status, sex or age. The Lessor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their race, religious creed, color, national origin, ancestry, physical handicap, medical condition, marital status, sex or age. This action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection of training, including apprenticeship. The Lessor will permit access to his or her records of employment, employment advertisements, application forms, and other pertinent data and records by the Fair Employment and Housing Commission, and any other agency of the State of California designated by the Joint Rules Committee, for the purposes of investigation to ascertain compliance with this paragraph. The State may determine a willful violation of the Fair Employment Practices provisions to have occurred upon receipt of a final judgment having that effect from a court in action to which the Lessor was a party, or upon receipt of a written notice from the Fair Employment and Housing Commission that it has investigated and determined that the Lessor has violated the Fair Employment and Housing Act and has issued an order, under Section 12970 of the Government Code which has become final. In the event of willful violation of the foregoing provision in the performance of this lease, and if the Lessor, within thirty (30) days after receipt of a written notice thereof from the State, fails to cure the breach, the State shall have the right immediately to terminate this lease and any necessary additional expense incurred by the State in securing space equivalent to the leased premises, including the additional rental, if any, shall be bome by the Lessor. 14. HOLD OVER - In the event State remains in possession of the leased premises after the expiration date of this lease, the State's continued possession shall create a tenancy from month to month with rental payable by State in arrears on the last day of each month in the amount specified in Paragraph 3. The tenancy created herein shall be subject to all other terms and conditions of this lease. 15. ACCESSIBILITY — A. AMERICANS WITH DISABILITIES ACT (ADA) — Lessor warrants that the leased premises to be used by the State in the performance of this lease are readily accessible to and usable by individuals with disabilities with respect to services, programs, and activities conducted by the State on the leased premised. In the event that Lessor makes alterations to any part of the leased premises used by the State, the alterations shall comply with the accessibility standards of the Americans with Disabilities Act of 1990 (42 U.S.C. § 12101 et seq.). In the event of violation of the foregoing provision in the performance of this lease, and if the Lessor, within thirty (30) days after receipt of a written notice thereof from the State, fails to cure the breach, the State shall have the right immediately to terminate this lease and any necessary additional expense incurred by the State in securing space equivalent to the leased premises, including the additional rental, if any shall be by the Lessor. B. CERTIFIED ACCESS SPECIALIST DISCLOSURE — Pursuant to Section 1938 of the Civil Code, the Lessor states that the leased premises: (check one) X have not undergone an inspection by a Certified Access Specialist (CASp). ❑ have undergone an inspection by a Certified Access Specialist (CASp), it was determined that the leased premises met all applicable construction -related accessibility standards pursuant to Section 55.51 et seq. of the Civil Code, and Lessor provided the State with a copy of all reports prepared by the CASp. 16. INSURANCE — The State represents that, as an entity of the State of California, it is self -insured against damages, injury and other forms of liability. Lessor or other parties shall not be named as an additional insured therein. 25B-7 17. ASBESTOS - Lessor hereby warrants and guarantees that the Premises leased to the State will be operated and maintained free of hazard from Asbestos -Containing Construction materials (ACCM), as that term is defined in Labor Code Section 6501.8. 18. SUBROGATION WAIVER AND INDEMNITY - A. SUBROGATION WAIVER — To the extent authorized by any fire and extended coverage insurance issued to Lessor on the herein damaged premises, Lessor releases State from liability for loss or damage covered by said insurance and waives subrogation rights of the insurer. B. INDEMNITY — (1) To the extent that Paragraph 18.A is not applicable, State agrees to indemnify, hold harmless and defend Lessor, its officers, employees, representatives and agents from any and all liability, claims, demands, actions, damages, costs and financial loss, including all costs and expenses and fees of litigation or arbitration, that arise directly or indirectly from any acts or omissions related to this Lease performed by the State or its agents, employees, or other persons acting on the State's behalf. This agreement to indemnify, hold harmless and defend shall apply whether such acts or omissions are the product of active negligence, passive negligence, willfulness or acts for which State or its agents, employees, or other persons acting on the State's behalf would be held strictly liable. (2) Lessor agrees to indemnify, hold harmless and defend the State, its officers, employees, representatives and agents from any and all liability, claims, demands, actions, damages, costs and financial loss, including all costs and expenses and fees of litigation or arbitration, that arise directly or indirectly from any acts or omissions related to this Lease performed by Lessor or its agents, employees, or others persons acting on Lessor's behalf. This agreement to indemnify, hold harmless and defend shall apply whether such acts or omissions are the product of active negligence, passive negligence, willfulness or acts for which Lessor or its agents, employees, or other persons acting on Lessor's behalf would be held strictly liable. 19. PARKING — State shall have the nonexclusive use of the parking area owned by Lessor at and around the leased premises; provided, however, State's agents, employees, customers and invitees for parking may not park in an area designated, identified, and/or reserved for parking by any other tenant or tenants, if any. State acknowledges that Lessor has entered into an agreement with the Orange Comity Transportation Authority for the construction of the OC Streetcar at SARTC, which has begun and is anticipated to continue through 2021. Such construction may affect the number of parking spaces available at any one time, though it is not possible to determine the precise effect at the time of this lease. 20. USE — For the purposes of this lease, State's intended use of the leased premises is strictly for office space. No other use of the leased premises shall be permitted without written consent of Lessor. 21. ASSIGNMENT AND SUBLETTING — State may not assign this lease or sublet the subject premises or any part thereof without the prior written consent of Lessor, which may be withheld at Lessor's sole discretion. Any assignment or subletting not in compliance with the provisions of this paragraph shall be a material breach of the lease, voidable and, at Lessor's option, shall terminate this lease. State assigning use of the office to a Senator other than Senator Umberg shall not constitute assignment or subletting under this paragraph. 22. DELIVERY OF LEASED PREMISES UPON TERMINATION OR EXPIRATION OF TERM — State agrees to deliver to Lessor physical possession of the leased premises upon the termination or expiration of this lease in the same condition as upon commencement of the lease, except for ordinary wear and tear. Any alterations, additions, or improvements affixed to the leased premises, except furnishings, equipment, and trade fixtures, shall, at Lessor's option, become part of the real property and belong to Lessor on expiration or termination of the term and any extension thereof. r 23. TENANT IMPROVEMENTS AND EARLY OCCUPANCY — A. TENANT IMPROVEMENTS - Prior to the commencement of the term of this lease, Lessor, at its sole cost, shall make all of the tenant improvements to the leased premises described in Exhibit B. The parties anticipate that the tenant improvements will be completed in July of 2019. B. EARLY OCCUPANCY - If the tenant improvements are completed before the commencement of the lease on August 1, 2019, the State may take possession of the leased premises upon completion of the tenant improvement. This early occupancy shall be subject to all of the terms and conditions of this lease, except that the State shall have no obligation to pay rent during this early occupancy period. 24. MISCELLANEOUS — A. AMENDMENT OF LEASE — This lease may be amended by mutual consent of the State and Lessor. An alteration of or variation from the terns of this lease is not valid unless made in writing and signed by the parties to this lease. B. WAIVER — No term or provision of this lase may be deemed waived and no breach excused, unless that waiver or consent is in writing and signed by an individual authorized to so waive or consent. Any consent by either party to, or waiver of, a breach by the other, whether express or implied, does not constitute a consent to, waiver of, or excuse for, any other breach or subsequent breach, except as may be provided expressly in the waiver or consent. C. FORCE MAJEURE — Except for defaults of subcontractors, Lessor and the State are not responsible for delays or failures to perform resulting from acts beyond the control of the nonperforming party. Those acts include, but are not limited to, acts of God, strikes, lockouts, riots, acts of war, epidemics, earthquakes, other disasters, governmental statutes or regulations imposed after the fact, and ancillary functions or utilities that are provided by a person or entity not a party to this lease. If a delay or failure in performance by Lessor arises out of a default of its subcontractor, and the default arises out of causes beyond the control of either Lessor or the subcontractor, without the fault or negligence of either of them, Lessor is not liable for damages for that delay or failure, unless the supplies or services to be furnished by the subcontractor were available from other sources in sufficient time to permit Lessor to meet the required performance schedule. D. TIME OF PERFORMANCE — Time is of the essence of this lease for purposes including the performance of services under any schedule established under this lease. E. ENTIRE AGREEMENT — This lease represents the complete and exclusive statement of the agreements between the State and Lessor with respect to the subject matter of this lease, and supersedes all prior agreements, proposals, representations, and other communications, written or oral, between the State and Lessor regarding this subject matter. The State and Lessor agree that there are no oral or written covenants, conditions, or agreements with respect to the subject matter of this lease except as set forth in this lease, F. GOVERNING LAW — This lease, and any amendments to this lease, shall be governed by and construed in accordance with the laws of the State of California. G. CONFLICT WITH EXISTING LAW — Lessor and the State agree that, if any provision of this lease is found to be illegal or unenforceable, that provision shall be deemed stricken and the remainder of this lease shall remain in full force and effect. Either party having knowledge of any such provision promptly shall inform the other of the presumed inapplicability of the provision. If the deletion of the illegal or unenforceable provision would substantially frustrate the purposes of this lease, the lease thereupon shall be terminated in a manner that is commensurate, to the maximum extent feasible, with the interests of both parties. 25B-9 IN WITNESS WHEREOF, this lease has been executed by the parties hereto as of the date first above written. LESSOR: SENATOR Member of the Senate LESSEE: SENATE RULES COMMITTEE of CALIFORNIA Erika Contreras Title: Secretary of the Senate Date: Date: ATTEST Norma Mitre Acting Clerk of the Council APPROVED AS TO FORM Sonia R. Carvalho, City Attorney AV Ig" -f., L JMn M. Funk Assistant City Attorney FOR APPROVAL Fuad S. Sweiss, PE, PLS Executive Director Public Works Agency 25B-10 EXHIBIT A 7 25B-11 EXHIBIT B Tenant Improvements Prior to the commencement of the term of this lease, Lessor, at its sole cost, shall make all of the following tenant improvements to the leased premises, which are shown in Exhibit A: 1. Remove the existing carpet and install new carpet throughout the leased premises (3,200 sq. ft.). 2. Repair damage to and paint the walls in the leased premises (5,000 sq. ft.). 3. Remove and replace ceiling tiles in the leased premises (3,200 sq. ft.). 4. Install new walls in the leased premises, as shown in red in Exhibit A (115 In. ft.). 5. Install new doors and frames for new offices and conference room (5 each). 25B-12 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JUNE 18, 2019 TITLE: MEMORANDUM OF UNDERSTANDING WITH THE SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS TO IMPLEMENT THE BICYCLIST/PEDESTRIAN EDUCATION CAMPAIGN AT A TOTAL PROJECT COST NOT TO EXCEED $53,466 (STRATEGIC PLAN NO. 1, 3B) RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1� Reading ❑ Ordinance on Vd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute a Memorandum of Understanding with the Southern California Association of Governments for Bicyclist and Pedestrian Education funds in an amount not to exceed $28,480 through December 31, 2019, and committing the City of Santa Ana to an In -Kind Match of $24,986 in project management services, to implement the City of Santa Ana Bicyclist/Pedestrian Education Campaign at a total project cost of $53,466, subject to non -substantive changes approved by the City Manager and City Attorney. In -kind Match of $24,986 will be funded by the General Fund. DISCUSSION The Santa Ana Public Works Agency, in partnership with Southern California Association of Governments (SCAG), has been awarded a grant for a Bicyclists and Pedestrian Safety Education Program from the State of California Department of Transportation Active Transportation Program. SCAG as the recipient agency is responsible for the procurement and payment of the consultant organization handling most of the direct education activities that includes adult bicycle safety classes, youth bike rodeos, safety assemblies for elementary and high school students, and a direct media campaign of safety messages on street lights, transit shelters, and local radio stations. The City of Santa Ana, as a sub -recipient on this project, is responsible for implementing the City of Santa Ana Bicyclist/Pedestrian Education Campaign at a total project cost of $53,466. Funding in the amount of $28,480 is identified for the Santa Ana Police Department to conduct saturation patrols with efforts focusing on primary collision factors such as distracted or impaired driving in areas with a high number of bicycle- and pedestrian -involved collisions. A Memorandum of Understanding (MOU) between SCAG and the City is required to implement the project. The MOU specifies a local match requirement of $24,986 that will be achieved through in - kind services provided by Public Works Agency Traffic Engineering staff through project management of the entire education program and traffic safety presentations to community organization and neighborhood associations. 25C-1 Memorandum of Understanding with Southern California Association of Governments June 18, 2019 Page 2 STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #1 - Community Safety, Objective #3 (promote fiscal accountability to ensure financial responsibility at all levels of the organization), Strategy B (promote ongoing efforts to obtain grant funding for activities that will assist in preventing, enforcing and reducing criminal activity and traffic collisions). ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT In Fiscal Year 2019-20, the City of Santa Ana Police Department staff will conduct saturation patrols and the Public Works Traffic Engineering staff will provide in -kind Project Management services to meet the requirements of the MOU between SCAG and the City. The following table summarizes the funds budgeted to deliver this bicycle and pedestrian safety program: Accounting Unit - Accounting Unit - Account No. Fiscal Year Account No. Fund Description Amount Project No. Description FY 2019-20 Public Works Select Street Construction — July -June 40317600-65205 SCAG Grants Internal Departments Personnel $28,480 Charges FY 2019-20 01117620-various General Fund PWA-TrafficfTransportation $24,986 Jul -June Engineering — Salaries & Benefits Total $53,466 All funds are scheduled for expenditure in Fiscal Year 2019-20. APPROVED AS TO FUNDS AND ACCOUNTS: FuadIi eiss, PE, PIS K t ryn DowAs, CPA g� Execuirector Executive Director Publics Agency Finance and Management Services Agency FSS/TH/CW Exhibit: 1. Memorandum of Understanding with Southern California Association of Governments 25C-2 Exhibit 1 MOU No.: M-025-18 SCAG ProjectIOWP No.: 225-3564J2.11 COVER PAGE MEMORANDUM OF UNDERSTANDING No. M-025-18 SCAG Overall Work Program (OWP) No: 225-3564J2.11 Federal/State Awarding Agency: Federal Highway Administration (FHWA) CFDA Number and Name: 20.205 Federal Award Identification Number (FAIN) No: N/A Federal Award Date: N/A Total Amount of the Federal Award: N/A Federal Award Project Description: N/A Pass -Through Awarding Agency: State of California Department of Transportation Pass -Through Award No: ATPLNI-6049(018) Pass -Through Award Date: 01/26/2018 (E-76 Authorization Date) Pass -Through Award Amount: $1,784,000 in Federal Funds and $579,000 in Local Match Pass -Through Agency Contact: David Wang, Senior Transportation Engineer Sub -Recipient Name: City of Santa Ana Sub -Recipient's DUNS No: 083153247 Total Amount of Federal Funds Obligated to the Sub -Recipient: $28,480 Total Amount of Non -Federal Funds Obligated by the Sub -Recipient: $24,986 Total Amount of the Subaward Project: $53,466 Reimbursement Ratio: 53.27% Subaward Period of Performance Start Date: Effective Date of the MOU Subaward Period of Performance End Date: 12/31/2019 Type of Contract: Project Specific Method of Payment: Lump Sum Project R&D: N/A Indirect Cost Rate for the Federal Award: 10% de minimis rate Subaward Project Title: City of Santa Ana Bicyclist/Pedestrian Education Campaign Implementation Subaward Project Description: The City of Santa Ana Police Department shall conduct sixteen (16) Saturation Patrols and the City of Santa Ana Public Works Traffic Engineering staff will conduct ten (10) bicycle and pedestrian traffic safety presentations to community organizations. These services support the objective of a larger project to conduct a yearlong educational outreach campaign related to bicycle and pedestrian safety in the City of Santa Ana. February 26, 2019 Page I 25C-3 MOU No.: M-025-18 SCAG ProjecdOWP No.: 225-3564J2.11 MEMORANDUM OF UNDERSTANDING No. M-025-18 BETWEEN THE SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS AND THE CITY OF SANTA ANA FOR BICYCLIST/PEDESTRIAN EDUCATION CAMPAIGN IMPLEMENTATION (SCAG Project/OWP No. 225-356412.11) This Memorandum of Understanding ("MOU" or "Agreement") is by and between the Southern California Association of Governments ("SCAG") and the City of Santa Ana ("CITY"), for Bicyclist/Pedestrian Education Campaign Implementation, subsequently herein referred to as "Project." SCAG and CITY are individually referred to herein as "Party" and may be collectively referred to herein as "Parties." RECITALS WHEREAS, SCAG is a Joint Powers Agency and a federally designated Metropolitan Planning Organization (MPO) for Southern California. As an MPO, SCAG is primarily responsible for the development of a Regional Transportation Plan/Sustainable Communities Strategy (RTP/SCS) for the counties of Imperial, Los Angeles, Orange, San Bernardino, Riverside, and Ventura; WHEREAS, SCAG has also initiated its Sustainability Planning Grant Program ("Sustainability Program") to assist Southern California jurisdictions in evaluating planning options and stimulating development consistent with SCAG's RTP/SCS and the region's overall planning goals. SCAG's Sustainability Program support visioning efforts, infill analyses, economic and policy analyses, and marketing and communication programs; WHEREAS, pursuant to its annual Overall Work Program (OWP), SCAG will be engaged in activities and projects that will require certain technical, professional, or support services from time to time related to its work regarding the RTP/SCS and the Sustainability Program; WHEREAS, CITY will conduct a citywide bicycle and pedestrian education campaign that will include advertisements, safety courses, police saturation patrols, safety/encouragement events, and other related activities to improve awareness in the city related to bicycle and pedestrian safety issues; WHEREAS, through its Sustainability Program, SCAG has awarded the CITY grant funds to pursue the Project which supports the goals and policies of SCAG's 2016 RTP/SCS; WHEREAS, the purpose of this MOU is to describe the responsibilities of the Parties, which includes SCAG to provide funding for the Project; WHEREAS, SCAG shall provide funding for the Project using federal grant funds awarded to SCAG as part of SCAG 2017 Active Transportation Safety and Encouragement Campaign, administered by the California Department of Transportation (Caltrans); Whereas, the Parties agree and acknowledge that performance of the Scope of Work shall be done by CITY and its applicable personnel, and that CITY shall not utilize third party contractors or subcontractors Febmary 26, 2019 Page 2 25C-4 MOU No.: M-025-18 SCAG ProjecUOWP No.: 225-3564J2.11 for purposes of this Project and that any modification regarding this matter shall require approval by SCAG; WHEREAS, SCAG shall contribute a maximum, not to exceed, amount of Twenty -Eight Thousand Four Hundred Eighty Dollars ($28,480.00) towards the total value of the Project, using Federal Transportation Funds for the Project; WHEREAS, CITY will perform the services required for the Project as identified in the Scope of Work and Budget, attached hereto and incorporated herein by this reference in Exhibit "A"; WHEREAS, CITY will perform in -kind services as part of a Local In -Kind Match commitment in the total amount of Twenty -Four Thousand Nine Hundred Eighty -Six Dollars ($24,986) for the Project as described in the In -Kind Scope of Work and Budget, attached hereto and subsequently referred to as Exhibit `B" and report the expenditures using In -Kind Match Report From ("Match Report"), attached hereto and subsequently referred to as Exhibit "C"; WHEREAS, CITY's designated project manager, in coordination with SCAG's designated project manager, will ensure the Scope of Work described in Exhibit A and B is performed by the CITY; WHEREAS, performance by the CITY will begin on the dates indicated herein and shall be completed by December 31, 2019; WHEREAS, this MOU shall supersede and replace any previous agreements or negotiations between SCAG and CITY related to the Project described herein; and WHEREAS, SCAG's Fiscal Year is from July 1 through June 30. NOW THEREFORE, IT IS MUTUALLY AGREED THAT: 1. MOU Contents This MOU is comprised of these terms and conditions and any attached Exhibits, and may be amended only by written agreement between SCAG and CITY. Such terms and conditions may be subject to change. The Recitals to this Agreement are also incorporated herein by this reference. 2. Scone of Work a. CITY shall perform the Scope of Work described in Exhibit A, in accordance with applicable regulations, ordinances, policies and procedures, Caltrans published manuals, including Caltrans Local Assistance Procedures (http://www.dot.ca.gov/hq/LocalPrograms/lam/lapm.htm) and Federal and State requirements, including but not limited to the requirements set forth in Sections 7, 13, 14, 15 and 16 of this MOU. b. SCAG shall only be obligated to reimburse the CITY for work performed as part of Exhibit A regarding the Project, up to the maximum amount of Twenty -Eight Thousand Four Hundred Eighty Dollars ($28,480.00). SCAG intends to use Federal Transportation Funds to meet its funding obligations described herein. February 26, 2019 Page 3 25C-5 MOU No.: M-025-18 SCAG ProjecUOWP No.: 225-3564J2.11 c. CITY shall provide the Local In -Kind Match services as described in Exhibit B for the Project, in the total amount of Twenty -Four Thousand Nine Hundred Eighty -Six Dollars ($24,986.00). The combined total of Fifty -Three Thousand Four Hundred Sixty -Six Dollars ($53,466.00) will be referred to herein as "Total Project Cost" during the term of this MOU. d. SCAG will provide reimbursement based on the match ratio of the Total Federal Transportation Funds ($28,480.00) and Total Project Cost ($53,466.00); 53.27% of approved invoiced costs. e. Subject to the execution of this MOU, CITY shall be responsible for performing the Scope of Work described in Exhibit A and Exhibit B, with written Quarterly Reports and In -Kind Commitment Report provided to SCAG's Project Manager. SCAG'S Project Manager shall review, approve and pay the reimbursement request submitted by CITY. f. SCAG's Project Manager shall be notified and invited to: the kick-off meeting, all steering or technical advisory committee meetings, all public engagement outreach events, and all City Council or Commission meetings where the Project in whole or in part is being presented or discussed. 3. Term The Term of this Agreement shall begin on the Effective Date of the Agreement and continue until December 31, 2019, hereinafter referred to as the "Completion Date," unless terminated earlier as provided herein. Time is of the essence in the performance of services under this MOU. 4. Program Management a. All work under this MOU shall be coordinated with SCAG and CITY through the Project Managers. b. For purposes of this MOU, SCAG designates the following individual as its Project Manager: Rye Baerg Program Manager (213)236-1866 baerg@scag.ca.gov SCAG reserves the right to change this designation upon written notice to CITY. c. For purposes of this MOU, CITY designates the following individual as its Project Manager: Cory Wilkerson Active Transportation Coordinator (714)647-5643 cwilkerson@santa-ana.org CITY reserves the right to change this designation upon written notice to SCAG. 5. Funding Febmary 26, 2019 Page 4 25C-6 MOU No.: M-025-18 SCAG ProjecdOWP No.: 225-3564J2.11 a. SCAG's contribution to the Project is funded wholly with Federal Transportation Funds, up to Twenty -Eight Thousand Four Hundred Eighty Dollars ($28,480.00). SCAG shall not be obligated to reimburse the CITY for any Project costs that exceed Twenty -Eight Thousand Four Hundred Eighty Dollars ($28,480.00). SCAG shall not be obligated to pay for any increase in Project costs which exceeds SCAG's obligated funding amount. b. CITY's in -kind service contribution to the Project is funded wholly with Local Transportation Funds (non-federal), in the amount of Twenty -Four Thousand Nine Hundred Eighty -Six Dollars ($24,986.00). 6. Invoices, Progress Reports and Match Reports a. SCAG's contribution to the Project shall be made on a reimbursement basis to the CITY, after CITY has performed the services made pursuant to the Scope of Work, Exhibit A and B. All invoices submitted to SCAG for payment shall be e-mailed to accountspayable@scag.ca.gov (file cannot exceed 1 OMB). b. Not less frequently than once in every month, CITY shall submit an invoice to SCAG using the Invoice Report, attached hereto and incorporated herein by this reference and subsequently herein referred to as "Exhibit D." SCAG shall reimburse the CITY for the services rendered at the reimbursement ratio of 53.27%. The Invoice Report shall include a narrative description of the progress toward completion of tasks related to the Project, percentage of completion per task, copies of receipts with a proof of the payment by CITY, payroll reports, copies of all deliverables, and In -Kind Commitment Report, Exhibit C. Upon satisfactory receipt and approval of the Invoice Report by SCAG's Project Manager, or the resolution of any dispute or concern with the Invoice Report by the Parties, SCAG will provide reimbursement to the CITY. c. All CITY's costs charged pursuant to this MOU shall be supported by properly executed payrolls showing labor (wage) rates per hour, copies of time records, including complete timesheets or time cards signed by the employee and approved by the supervisor; invoices and vouchers, evidencing in proper detail the nature of the charges, and other documentation requested by SCAG. d. All direct costs billed must be specifically identified and supported with original receipts, invoices, or statements. Any travel and subsistence costs must be reasonable and are limited to those rates paid to non-represented/excluded State employees under California's State Department of Personnel Administration rules, subject to changes posted at: http://www.dot.ca.gov/ha/asc/travel/ch 12/1 consultant.htm. e. If applicable, for credit or reimbursement of indirect costs for work provided pursuant to Exhibits A, CITY shall comply with applicable Federal and State requirements including but not limited to Caltrans regulations and policies. If CITY has a negotiated indirect cost rate approved by a cognizant agency, CITY must submit a copy of the approved indirect cost allocation plan to SCAG. Credit of indirect costs is contingent upon receipt by SCAG of a copy of a current indirect cost plan approved by Calftans or a cognizant agency. However, the last approved indirect cost allocation plan shall remain in place until each new annual plan is approved, so long as Caltrans Febmary 26, 2019 Page 5 25C-7 MOU No.: M-025-18 SCAG ProjectlOWP No.: 225-3564J2.11 permits such practice. If CITY has not received a negotiated indirect cost rate previously, CITY may elect to charge a de minimis rate of 10% of modified total direct costs (MTDC). By the tenth day following the start of a new quarter (i.e., January 10, April 10, July 10, October 10), CITY shall submit a Quarterly Report in a format reasonably acceptable to SCAG' Project Manager. The Quarterly Report shall include, in narrative form, a description of services performed by CITY as well as progress toward completion of tasks related to the Project for the prior quarter and a reporting of all costs incurred regarding the Project, and include copies of receipts and paid invoices attached for SCAG's records. g. CITY shall submit an In -Kind Match Report with its invoice to SCAG, consistent with Exhibit C, with the following information included, but not limited to: Name of Project, Description of Services Provided, Period of the Service Performed, Staff Cost Incurred, Actual Hourly Pay Rates, Total Hours Worked, Fringe Benefit Rate, and Fringe Costs. Upon request of SCAG, the CITY shall provide additional information or documentation to support the costs contained in the In -Kind Match Report within thirty (30) calendar days. The matching funds will not participate in the Project work performed in advance of the effective date of this MOU. h. On all documents submitted to SCAG for the Project, including Invoices, Quarterly Reports and In -Kind Match Report, the Project Number (OWP No. 225-3564J2.11) shall be referenced from the Effective Date through December 31, 2019. The Parties acknowledge that SCAG's fiscal year is from July 1 to June 30. CITY agrees to submit any pending invoices to SCAG on or before July 21 during the contract's term (e.g., 7/31/18 & 7/31/19). 7. Cost Principles a. CITY agrees to comply with the following: 1) The Contract Cost Principles and Procedures, 48 Code of Federal Regulations (CFR), Federal Acquisition Regulations System, Chapter 1, Subchapter E, Part 31, et seq. (Office of Management and Budget Circular A-87 Revised, "Cost Principles for State, Local, and Indian Tribal Governments) and 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, Caltrans Local Assistance Procedures, Public Contract Code (PCC) 10300-10334 (procurement of goods), PCC 1033 5-103 81 (non-A&E services), and other applicable State and Federal regulations, shall be used to determine the acceptability of individual project cost items. 2) The CITY agrees, and will require that its contractors be obligated to agree, that (a) the Contract Cost Principles and Procedures, 48 CFR, Federal Acquisition Regulations System, Chapter 1, Part 31 , et seq., shall be used to determine the allowability of individual project cost items; and (b) all parties shall comply with Federal administrative procedures in accordance with 49 CFR, Part 18, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments and 2 CFR, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. The CITY and every contractor receiving Project funds under this Agreement shall comply with Federal administrative procedures in accordance with 49 February 26, 2019 Page 6 25C-8 MOU No.: M-025-18 SCAG Project/OWP No.: 225-3564J2.11 CFR, Part 18, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments. b. Any costs for which the CITY receives reimbursement or credit that is determined by a subsequent audit or other review by either SCAG, Caltrans or other State or Federal authorities to be unallowable under, but not limited to, Title 2, CFR, part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and 49 CFR, Part 18, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments, are to be repaid by the CITY within thirty (30) calendar days of the CITY receiving notice of audit findings and a written demand for reimbursement from SCAG. Should the CITY fail to reimburse unallowable costs due SCAG within thirty (30) calendar days of demand, or within such other period as may be agreed between both parties hereto, SCAG is authorized to withhold future payments due to the CITY. 8. Electronic Version of Work Products a. For purposes of this Agreement, "Work Products" shall mean any deliverables, including reports, data files, newsletters or any other written or electronic materials provided pursuant to the Scope of Work described in Exhibit A. b. CITY shall submit one (1) electronic copy of all completed deliverables associated with the Project to the assigned SCAG Project Manager. c. SCAG shall own all Work Products and shall grant to CITY a royalty -free, non-exclusive and irrevocable license to reproduce, publish or otherwise use Work Products related to the Project and developed as part of this MOU; provided, however, that any reproduction, publishing, or reuse of the Work Products without written verification by SCAG will be at CITY's sole risk and without liability or legal exposure to SCAG. Such written verification by SCAG shall not be unreasonably denied and shall be provided by SCAG within ten calendar days of CITY's request therefor. d. Subject to the California Public Records Act, all deliverables and related materials related to the Project shall be held confidential by CITY unless otherwise authorized for disclosure by the SCAG Project Manager. Nothing furnished to CITY or SCAG which is otherwise known or is generally known, or has become known, to the related industry shall be deemed confidential. CITY shall also safeguard such confidential materials from unauthorized disclosure, using the same standard of care to avoid disclosure, as CITY treats its confidential information, but in no case less than reasonable care. 9. MOU Changes a. No alteration or deviation of the terms of this MOU shall be valid unless made in writing and properly executed by both parties. b. Either Party may request, at anytime, amendments to this MOU and will notify the other party regarding such changes. Within ten (10) calendar days from the date of the written notice, the requesting Party shall notify the other Party of the impact of such changes on the Scope of Work, schedule, and budget. Upon agreement between the Parties as to the required changes, February26, 2019 Page 7 25C-9 MOU No.: M-025-18 SCAG Project/OW No.: 225-3564J2.11 an amendment to this MOU shall be prepared regarding the same. If the Parties are unable to reach an agreement regarding the changes requested by SCAG, the Parties may terminate this MOU in accordance with the provisions set forth in Section 20 (a) of this MOU. 10. Notices Any notice or notices required or permitted to be given pursuant to this MOU may be personally served on the other party by the party giving such notice, or may be served by certified mail, return receipt requested, to the following addresses: To SCAG: Basil Panas Chief Financial Officer Southern California Association of Governments 900 Wilshire Blvd., Suite 1700 Los Angeles, CA 90017 Phone: (213) 236-1817 pans@scag.ca.gov To CITY: Kristine Ridge City Manager City of Santa Ana 20 Civic Center Plaza (M-31) P.O. Box 1988 Santa Ana, CA 92702 11.Insurance CITY shall, at its own expense, procure and maintain policies of insurance of the types and amounts below, for the duration of the MOU. The policies shall state they afford primary coverage. The minimum required insurance coverage required by SCAG is set for below. a. Minimum Scope of Insurance —Coverage shall beat least as broad as: (1) Insurance Services Office Commercial General Liability coverage (Occurrence form CG0001), or its equivalent. (2) Insurance Services Office form number CA0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto) or its equivalent. (3) Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. (4) Professional Liability (Errors and Omissions) insurance appropriate to the profession February 26, 2019 Page 8 25C-10 MOU No.: M-025-18 SCAG ProjecUOWP No.: 225-3564J2.11 b. Minimum Limits of Insurance —CITY and SCAG shall maintain limits no less than: (1) General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. (2) Automobile Liability: Including contractual liability insuring owned, non -owned, hired and all vehicles by CITY with a combined single limit of not less than $1,000,000 applicable to bodily injury, or death, and loss of or damage to property in any one occurrence. (3) Workers' Compensation Liability: Including Occupational Diseases in accordance with California Law and Employers' Liability Insurance with a limit of not less than $1,000,000 each accident. (4) Professional Liability Insurance: With limits of not less than $1,000,000 per occurrence. In addition, it shall be required that the professional liability insurance policy remain in effect for six (6) months after the Completion Date of this MOU. c. Other Insurance Provisions — Both CITY and SCAG should comply with the other insurance provisions. The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: (1) SCAG, its officials and employees are to be covered as additional insureds, as respects to liability arising out of the activities performed by or on behalf of CITY, products and completed operations of CITY; premises owned, occupied or used by CITY; or automobiles owned leased, hired or borrowed by CITY. The coverage shall contain no special limitations on the scope of protection afforded to SCAG, its officials and employees. (2) For any claims related to this Project, CITY's insurance coverage shall be primary insurance as respects SCAG, its officials and employees. Any insurance or self-insurance maintained by SCAG shall be excess of CITY's insurance and shall not contribute with it. (3) Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to SCAG, its officials and employees. (4) CITY's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. (5) Workers' Compensation and Employer's Liability policies shall contain the inclusion of SCAG, its members, subsidiaries, officials and employees and shall provide a waiver of subrogation. d. Deductibles and Self -Insured Retentions —Any deductibles or self -insured retentions in amounts over $10,000 must be declared to and approved by SCAG. e. Acceptability of Insurers — Insurance is to be placed with California admitted insurers with a current A.M. Best's rating of no less than A and be admitted, unless otherwise approved by February 26, 2019 Page 9 25C-11 MOU No.: M-025-1 S SCAG Project/OWP No.: 225-3564J2.11 SCAG. Verification of Coverage — CITY shall fiunish SCAG with original endorsements and certificates of insurance evidencing coverage required by this clause. All documents are to be signed by a person authorized by that insurer to bind coverage on its behalf. All documents are to be received and approved by SCAG before work commences. Upon request of SCAG at any time, CITY shall provide complete, certified copies of all required insurance policies, including endorsements affecting the coverage required by these specifications. 12. Indemnification a. Except for the negligence or willful misconduct of SCAG and any of its directors, officers, agents, employees, assigns, and successors in interest, CITY undertakes and agrees to defend, indemnify, and hold harmless SCAG and any of its directors, officers, agents, employees, assigns, and successors in interest from and against all suits and causes of action, claims, losses, demands and expenses, including, but not limited to, attorneys fees and cost of litigation, damage or liability of any nature whatsoever, for death or injury to any person, employees and agents, or damage or destruction of any property of either party hereto or of third parties, arising in any manner by reason of the negligent acts, errors or omissions or violations of law by CITY, employees and agents in connection with its activities in pursuing the Project or under this MOU. b. Except for the negligence or willful misconduct of CITY and any of its directors, officers, agents, employees, assigns, and successors in interest, SCAG undertakes and agrees to defend, indemnify, and hold harmless CITY and any of its directors, officers, agents, employees, assigns, and successors in interest from and against all suits and causes of action, claims, losses, demands and expenses, including, but not limited to, attorney's fees and cost of litigation, damage or liability of any nature whatsoever, for death or injury to any person, including SCAG's employees and agents, or damage or destruction of any property of either party hereto or of third parties, arising in any manner by reason of the negligent acts, errors or omissions or violations of law by SCAG or its employees and agents in connection with its activities in pursuing the Project or under this MOU. 13. Records Retention and Audits a. CITY shall maintain all source documents, books and records connected with the Project and all work performed under this MOU for a minimum of four (4) years from the Completion Date or the date an audit resolution is achieved for each annual SCAG Overall Work Program (OWP), whichever is later, and shall make all supporting information available upon request for inspection and audit by representatives of SCAG, the California State Auditor, or other authorized government agency. Copies shall be made and furnished by SCAG upon request at no cost to SCAG. b. SCAG shall maintain all source documents, books and records connected with the Project under this MOU for a minimum of four (4) years from the Completion Date or the date an audit resolution is achieved for each annual SCAG OWP, and shall make all supporting information available upon request for inspection and audit by representatives of CITY, the California State February 26, 2019 Page 10 25C-12 MOU No.: M-025-18 SCAG ProjecUOWP No.: 225-3564J2.11 Auditor, or other authorized government agency. Copies shall be made and furnished by CITY upon request at no cost to the CITY. c. CITY shall establish and maintain an accounting system conforming to Generally Accepted Accounting Principles (GAAP) to support Invoices which segregate and accumulate the costs of work elements by line item and produce Progress Reports which clearly identify reimbursable costs and other expenditures by OWP work elements. d. If applicable, CITY agrees to include all costs associated with this MOU and any amendments thereto to be examined in the annual audit and in the schedule of activities to be examined under a single audit prepared by CITY in compliance with Subpart F of the Office of Management and Budget's Uniform Grant Guidance, formerly referred to as Circular A-133. The CITY is responsible for assuring that the Single Auditor has reviewed the requirements of this MOU. Copies of said audits shall be submitted to SCAG. e. Neither the pendency of a dispute nor its consideration by a Party or the State shall excuse the other Party from full and timely performance in accordance with the terms of this MOU. 14. Federal Certifications and Assurances a. CITY shall adhere to the requirements contained in SCAG's annual Certification and Assurances (FHWA and FTA "Metropolitan Transportation Planning Process Certification") submitted as part of SCAG's OWP, pursuant to 23 CFR 450.334 and the 23 U.S.C. 1234. This Certification shall be published annually in SCAG's OWP. Such requirements shall apply to CITY to the same extent as SCAG and may include, but are not limited to: 1) Title VI of the Civil Rights Act of 1964 and Title VI Assurance executed by California under 23 U.S.C. 324 and 29 U.S.C. 794; 2) Pub. Law 105-178, 112 Stat. 107 and any successor thereto, regarding the involvement of disadvantaged business enterprises in FHWA and FTA funded projects (Sec. 105(f), Pub. L. 970424, 96 Stat. 2100, 49 CFR part 26); and 3) The Americans with Disabilities Act of 1990 (Pub. L. 101-336, 104 Stat. 327, as amended) and the United States Department of Transportation (US DOT) implementing regulations (49 CFR 27, 37, and 38). b. CITY shall additionally comply with the requirements contained in the annual FTA "Certifications and Assurances for FTA Assistance," including "Certifications and Assurances Required of Each Applicant" and the "Lobbying Certification" in compliance with 49 U.S.C. Chapter 53; published annually in SCAG's OWP. Such assurances shall apply to CITY to the same extent as SCAG, and include but are not limited, the following areas: 1) Standard Assurances 2) Debarment, Suspension, and Other Responsibility Matters for Primary Covered Transactions 3) Drug Free Work Place Agreement 4) Intergovernmental Review Assurance February 26, 2019 Page I l 25C-13 MOU No.: M-025-18 SCAG ProjecUOWP No.: 225-3564J2.11 5) Nondiscrimination Assurance 6) DBE Assurance 7) Nondiscrimination on the Basis of Disability 8) Certification and Assurances Required by the U.S. Office of Management and Budget c. Federal Lobbying Activities Certification. 1) By signing this MOU, CITY certifies, to the best of its knowledge and belief, that no State or Federal funds have been paid or will be paid, by or on behalf of CITY, respectively, to any person for influencing or attempting to influence an officer or employee of any State or Federal agency, a Member of the State Legislature or United States Congress, an officer or employee of the Legislature or Congress, or any employee of a Member of the Legislature or Congress in connection with the awarding of any State or Federal contract, the making of any State or Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, or the extension, continuation, renewal, amendment, or modification of any State or Federal contract, grant, loan, or cooperative agreement. 2) If any funds other than State or Federal funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any Federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal grant, CITY, as applicable, shall complete and submit Federal Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with those form instructions." 3) This certification is a material representation of fact, upon which reliance was placed when this MOU was entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, U.S.C. and by the Master Fund Transfer Agreement between SCAG and the State. 15. Equal Employment OAportunitv/Nondiserimination a. In the performance of work undertaken pursuant to this MOU, the Parties and their assignees and successors in interest, shall affirmatively require that their employees and contractors shall not unlawfully discriminate, harass or allow harassment, against any employee or applicant for employment because of sex, race, color, ancestry, religious creed, national origin, physical disability (including HIV and AIDS), medical condition (cancer), age, marital status, denial of family and medical care leave, and denial of pregnancy disability leave. b. The Parties shall ensure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. The Parties shall comply with the provisions of the Fair Employment and Housing Act (Goverment Code, Section 12900 et seq.) and the applicable regulations promulgated there under (California Code of Regulations, Title 2, Section 7285.0 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing the Government Code sections referenced above, are incorporated into this MOU by reference and made a part hereof as if set forth in full. February 26, 2019 Page 12 25C-14 MOU No.: M-025-18 SCAG ProjectlOWP No.: 225-3564J2.11 c. Noncompliance: In the event of noncompliance by either Party with the nondiscrimination provisions of this MOU, the other Party may cancel, terminate or suspend the MOU, in whole or in part. d. If required by DOT, additional or alternate sanctions for noncompliance may be imposed. e. The Congress of the United States, the Legislature of the State of California and the Governor of the State of California, each within their respective jurisdictions, have prescribed certain nondiscrimination requirements with respect to contract and other work financed with public funds. CITY agrees to comply with the requirements of the Fair Employment Practices Addendum (Exhibit E attached hereto) and the Nondiscrimination Assurances (Exhibit F attached hereto). 16. Conflict of Interest The Parties shall comply with Federal and State conflict of interest laws, regulations and policies. 17. Independent Contractor CITY, officers, employees and agents shall be independent contractors in the performance of this MOU, and not officers, employees, contractors or agents of SCAG. 18. Disputes Except as otherwise provided in this MOU, if a dispute arises between the Parties to this MOU, the Parties hereto agree to use the following procedure to resolve such dispute, prior to pursuing other legal remedies: a) A meeting shall be held promptly between the Parties that will be attended by the CITY's Project Manager and SCAG's Project Manager as well as individuals with decision -making authority (to the extent reasonably possible), who will attempt in good faith to negotiate a resolution of the dispute. b) If the Parties are unsuccessful in resolving the dispute under (a) above, they may: (1) agree to submit the matter to mediation, binding judicial reference, or a private adjudicator (if all Parties so agree); or (2) initiate litigation following advance written notice to the other Party of not less than thirty (30) days. c) If any party should bring a legal action against the other to enforce the terms of this MOU, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs, as determined by a court of competent jurisdiction in said proceeding. 19. Noncompliance Febmary26, 2019 Page 13 25C-15 MOU No.: M-025-18 SCAG Project/OWP No.: 225-3564J2.11 In addition to such other remedies as provided by law, in the event of noncompliance with any grant condition or specific requirement of this MOU, this MOU may be terminated. 20. Termination of MOU a. Termination for Convenience. Either Party may terminate this MOU at any time by giving written notice to the other party of such termination at least thirty (30) calendar days before the effective date of such termination. In such event, all finished or unfinished documents and other materials as described in the MOU shall be provided to SCAG and CITY shall be paid for all services performed provided the required consultation between CITY and SCAG has been undertaken in accordance with Section 2(e) of this MOU. Further, the Party terminating this MOU before the effective date of termination shall be responsible for any actual, incurred termination costs incurred as a result of such termination notice. b. Termination for Cause. If through any cause, CITY shall fail to timely and adequately fulfill its obligations under this MOU, or if CITY violates any of the covenants, agreements, or stipulations of this MOU, SCAG shall thereupon have the right to terminate the MOU by giving not less than ten (10) calendar days written notice to CITY of the intent to terminate and specifying the effective date thereof. SCAG shall provide a reasonable opportunity for CITY to cure prior to termination. In no event shall such opportunity to cure extend beyond the term of the MOU. In the event that SCAG invokes this termination clause, all finished or unfinished documents and other materials as described in the MOU shall be returned to SCAG at its option. c. If through any cause, SCAG shall fail to timely and adequately fulfill its obligations under this MOU, or if SCAG violates any of the covenants, agreements, or stipulations of this MOU, CITY shall thereupon have the right to terminate the MOU by giving not less than ten (10) calendar days written notice to SCAG of the intent to terminate and specifying the effective date thereof. CITY shall provide a reasonable opportunity for SCAG to cure prior to termination. In no event shall such opportunity to cure extend beyond the term of the MOU. In the event that CITY invokes this termination clause, all finished or unfinished documents and other materials as described in the MOU shall be returned to CITY at its option. 21. Non -Assignment a. Neither Party shall assign this MOU, or any part thereof, without the written consent of each Party to this MOU. Any assignment without such written consent shall be void and unenforceable. b. The covenants and agreement of this MOU shall inure to the benefit of, and shall be binding upon each of the Parties and their respective successors and assignees. 22. Release of Information CITY shall not release any information to a third party or otherwise publish or utilize any information obtained or produced by it as a result of or in connection with the performance of services under this Agreement without the prior written authorization of SCAG, except as required by law and with prior written notice to SCAG. Febmary26, 2019 Page 14 25C-16 MOU No.: M-025-18 SCAG ProjecdOWP No.: 225-3564J2.11 23. Severability If any provision of this MOU is held to be illegal, invalid, or unenforceable, in whole or in part, such provision shall be modified to the minimum extent necessary to make it legal, valid, and enforceable, and the legality, validity, and enforceability of the remaining provisions shall not be affected thereby. 24. Survival The following sections survive expiration or termination of this MOU: Section 8 (Electronic Version of Work Products) Section 12 (Indemnification) Section 18 (Disputes) Section 22 (Release of Information) 25. Jurisdiction and Venue This MOU shall be deemed an agreement under the laws of the State of California and for all purposes shall be interpreted in accordance with such laws. Both Parties hereby agree and consent to the exclusive jurisdiction of the courts of the State of California and that the venue of any action brought thereunder shall be Los Angeles County, California. 26. Waiver No delay or failure by either Party to exercise or enforce at any time any right or provision of this Agreement shall be considered a waiver thereof of such Party's right thereafter to exercise or enforce each and every right and provision of this Agreement. A Waiver to be valid shall be in writing but need not be supported by consideration. No single waiver shall constitute a continuing or subsequent waiver. 27. Standard of Care The Parties shall perform the work required for the production of the Project under this MOU in accordance with generally accepted industry standards, practices, and principles applicable to such work. 28. Force Maieure Neither CITY nor SCAG shall be liable or deemed to be in default for any delay or failure in performance under this MOU or interruption of services resulting, directly or indirectly, from acts of God, civil or military authority, acts of public enemy, war, strikes, labor disputes, or any other similar cause beyond the reasonable control of CITY or SCAG. 29. Execution of MOU or Amendment February 26, 2019 Page 15 25C-17 MOU No.: M-025-18 SCAG Project/OWP No.: 225-3564J2.11 This MOU, or any amendment related thereto (Amendment), may be executed in multiple counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same agreement. The signature page of this MOU or any Amendment may be executed by way of a manual or authorized signature. Delivery of an executed counterpart of a signature page to this MOU or an Amendment by electronic transmission scanned pages shall be deemed effective as a delivery of a manually or digitally executed counterpart to this MOU or any Amendment. 30. Effective Date This MOU shall be effective as of the last date in which the document is executed by both Parties. 31. Entire MOU This MOU, including the attached Exhibits A, B, C, D, E and F represents and contains the entire agreement of the Parties with respect to the matters set forth herein. This MOU supersedes any and all prior negotiations, discussions and, if any, previous agreements between the Parties. February 26, 2019 Page 16 25C-18 MOU No.: M-025-18 SCAG ProjectlOWP No.: 225-3564J2.11 SIGNATURE PAGE TO MEMORANDUM OF UNDERSTANDING NO. M-025-18 IN WITNESS WHEREOF, the Parties have caused this MOU to be executed by their duly authorized representatives as of the dates indicated below: SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS ("SCAG") m Basil Panas Chief Financial Officer APPROVED AS TO FORM: Joann Africa Chief Counsel/Director of Legal Services CITY OF SANTA ANA ("CITY") ATTEST: Date Date CITY OF SANTA ANA NORMA MITRE KRISTINE RIDGE Acting Clerk of the Council City Manager APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney By: IV, -f.'L hn M. Funk Assistant City Attorney Fuad S. Sweiss, PE, PLS Executive Director Public Works Agency Febm ry 26, 2019 Page 17 25C-19 MOU No.: M-025-18 SCAG Project/OWP No.: 225-3564J2.11 Exhibit A SCOPE OF WORK AND BUDGET Task 1: Conduct Saturation Patrols The City of Santa Ana Police Department shall conduct sixteen (16) Saturation Patrols; strategies may include impaired driving enforcement, enforcement operations focusing on primary collision factors, distracted driving, night-time seat belt enforcement, and special enforcement operations encouraging motorcycle safety, enforcement and public awareness in areas with a high number of bicycle and pedestrian collisions, and educational programs. These strategies are designed to earn media attention thus enhancing the overall deterrent effect. Task 1 Deliverables: 1.1 Documentation of Saturation Patrols (photos, list of dates/times/locations, number of contacts, digital copies of materials provided) Task Activity Grant IndCind Total Deliverables Budget Bud et Cost Task 1: Conduct Saturation Not to exceed $0.00 Not to Documentation of Saturation Patrols Patrols $28,480.00 exceed (photos, list of dates/times/locations, $28,480.00 number of contacts, digital copies of materialsprovided) Total Grant $28,480.00 $0.00 $28,480.00 February 26, 2019 Page 18 25C-20 MOUNo.: M-025-18 SCAG Project/OWP No.: 225-3564J2.1 l Exhibit B IN -HIND SCOPE OF WORK AND BUDGET Task 2: Present Pedestrian and Bicycle Safety Education to Community Organizations The City of Santa Ana Public Works Traffic Engineering staff shall conduct ten (10) bicycle and pedestrian traffic safety presentations to community organizations; including neighborhood associations and local non-profit coalitions. The presentations will include information on the City's recently adopted Vision Zero Plan - Safe Mobility Santa Ana; as well as general pedestrian and bicycle best practices and behaviors. Task 2 Deliverables: 2.1 Documentation of Bicycle and Pedestrian Safety Presentations (photos, list of dates/times/locations, number of participants, digital copies of materials provided) Task 3: Project Management Monthly project manager status meetings will occur via telephone (using City of Santa Ana conference call phone number that will be provided) to ensure regular and consistent communication on upcoming tasks, identifying potential risks and challenges to success. Participation in the monthly meetings shall include SCAG Project Manager, City of Santa Ana Project Manager and the Consultant Project Manager. The status meetings will occur to ensure the project remains on time and within budget, and expectations are defined. The Consultant will develop the agenda and prepare a summary of monthly meeting notes. City Staff will participate in managing the project and will be responsible for updating the City's website to ensure scheduled events are advertised. Task 3 Deliverables: 3.1 Documentation of Project Manager Meetings (agendas, minutes, documents reviewed) 3.2 Updated Website Task Activity Grant In -Kind Total Deliverables Budget Budget Cost Task 2: Present Pedestrian and Documentation of Bicycle Bicycle Safety Education and Pedestrian Safety to Community Presentations (photos, list of Organizations dates/times/locations, number of participants, digital copies $0.00 $24,986.00 $24,986.00 of materialsprovided) Task 3: Project Management Documentation of Project Manager Meetings (agendas, minutes, documents reviewed) Updated Web site Total Local In -Kind Match $0.00 $24,986.00 $24,986.00 February 26, 2019 Page 19 25C-21 MOUNo.: M-025-18 SCAG Project/OWP No.: 225-356472.11 Exhibit C In -Kind Report Format Use Agency Letterhead _ IN -KIND MATCH REPORT Email In -Kind Report to: accountsoavableCdscaz.ca.zov Basil Pangs Chief Financial Officer _ at _. __I _� *s Date: ��1 SCAG OWP#:I jn Kurr,Match Rep2rt#:1 �� _-��,..i. _ `j _ _ Reporting Period: Southern California Association of Governments 900 Wilshire Blvd, 17th Floor Los Angeles, CA 90017 Projcot Title: _ Cost Categories Hourly Rate Hours Amount Fringe Rate Fringe MCRate* HIC Amount Direct Labor C/assification(s): $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Subtotal- Direct Labor $0.00 $0.00 $0.00 $0.00 Other Direct Costs / ODCs) $0.00 $0.00 $0.00 $0.00 $0.00 Subtotal - ODCs: $0.00 $0.00 $0.00 TOTAL for IN -KIND MATCH SO.001 1 $0.00 I, , certify that this in -kind match report and the information attached is true and correct. I also certify that all eligible and required documentation is on fie for this report and that I am the person duty authorized to sign this certification on behalf of my agency. I further certify that our agency is not using any federal funds to match expenditure funds. -�_ - T Signature -. Tiale Print Name Date �_-- 'IfappGcable, for credit of vmduM costs for work provided as m-kmd conmbiIDoq a subrecipem must submit an approved Indhees Cass Allocation Plan (ICAP) or Indirect Cost Rate Proposal (IC") to SCAG on an amtwl basis for SCAGs review. Its subrecipient has not received a negotiated indirect cost rate prevuarly, then the sub-recgsm may elect to charge a do mmmds rate of 10% of modified total deect carts (MTDC). February26, 2019 Page 20 25C-22 MOU No.: M-025-18 SCAG Projecb'OWP No.: 225-3564J2.11 Exhibit D Invoice Report Format Use AgencyLettethead INVOICE Email invoice to: Date: accountsoavable@scag.ca.gov _ _ _ ( = , � :i�r7 _nr-_ PY _ _ Invoice#d Basil Panes ChiefFinancial I t Invoice Period: CaliforniaOfficer-- Southern CafAssociation of Governments _ MOU #d 900 Wdshae Blvd., Suite 1700 OWP #d Los Angeles, CA 90017 Pro ect Title: It I Case Categories Budge! Garen( Lrvmce Current Progress Completion Curren( lnvnice Total Previously In -iced Y7D Expenditure YTD Progress Completion Balance Tack 1 Task 1.1 -Project Kickoff mectin $0.00 0% $0.00 $0.00 $0.00 0% Task 1.2 - Project Coordination $0.00 0% 0% Task 2 Task2.1- $0.00 0% $0.00 $0.00 $0.00 Task 3 Task 3.1 - $0.00 0% $0.00 $0.00FSO 00 Task 4 Task 4.1 - $0.001 $0.00 $0.00 $0.00 Task 5 Task 5.1 - $0.00 0 $0.00 $0.00 $0.00 Task 6 Task 6.1- $0.00 0% $0.00 $0.00 $0.00 Task 7 Task 7.1 - $0.00 0% $0.00 $0.00 $0.00 Task 8 Task 8.1 - $0.00 0% $0.00 $0.00 $0.00 TOTAL 1 $70,000.00 1 $0.001 1 $0.00 $0.00 $0.00 $70,000.00 Please send check to: CCYt©FTBD 1„ - AddtessT< CitylSste➢21P,1,��. _ 71E � February 26, 2019 Page 21 25C-23 MOU No.: M-025-18 SCAG ProjectIMP No.: 225-3564J2.11 Exhibit E Fair Employment Practices Addendum In the performance of this Agreement, the City of Santa Ana ("CITY") will not discriminate against any employee for employment because of race, color, sex, sexual orientation, religion, ancestry or national origin, physical disability, medical condition, marital status, political affiliation, family and medical care leave, pregnancy leave, or disability leave. CITY will take affirmative action to ensure that employees are treated during employment without regard to their race, sex, sexual orientation, color, religion, ancestry, or national origin, physical disability, medical condition, marital status, political affiliation, family and medical care leave, pregnancy leave, or disability leave. Such action shall include, but not be limited to, the following: employment; upgrading; demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. CITY shall post in conspicuous places, available to employees for employment, notices to be provided by SCAG setting forth the provisions of this Fair Employment section if requested by CITY. 2. CITY, its contractor(s) and all subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Government Code Section 1290-0 et seq.), and the applicable regulations promulgated thereunder (California Code of Regulations, Title 2, Section 7285.0 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code, Section 12900(a-0, set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations are incorporated into this MOU by reference and made a part hereof as if set forth in full. Each of the CITY's contractors and all subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreements, as appropriate. 3. CITY shall include the nondiscrimination and compliance provisions of this clause in all contracts and subcontracts to perform work under this MOU. 4. CITY will permit access to the records of employment, employment advertisements, application forms, and other pertinent data and records by SCAG, the State Fair Employment and Housing Commission, or any other agency of the State of California designated by SCAG, for the purposes of investigation to ascertain compliance with the Fair Employment section of this MOU. 5. Remedies for Willful Violation: a) SCAG may determine a willful violation of the Fair Employment provision to have occurred upon receipt of a final judgment to that effect from a court in an action to which CITY was a party, or upon receipt of a written notice from the Fair Employment and Housing Commission that it has investigated and determined that CITY has violated the Fair Employment Practices Act and had issued an order under Labor Code Section 1426 which has become final or has obtained an injunction under Labor Code Section 1429. b) For willful violation of this Fair Employment Provision, SCAG shall have the right to terminate this MOU either in whole or in part, and any loss or damage sustained by SCAG in securing the goods or services thereunder shall be borne and paid for by CITY and by the surety under the performance bond, if any, and SCAG may deduct from any moneys due or thereafter may become due to CITY, the difference between the price named in the MOU and the actual cost thereof to SCAG to cure CITY's breach of this MOU. February 26, 2019 Page 22 25C-24 MOU No.: M-025-18 SCAG ProjecUOWP No.: 225-3564J2.11 Exhibit F Nondiscrimination Assurances For purposes of this Agreement, the City of Santa Ana ("CITY") HEREBY AGREES THAT, as a condition to receiving any federal financial assistance from SCAG, it will comply with Title VI of the Civil Rights Act of 1964, 78 Stat. 252, 42 U.S.C. 2000d-42 U.S.C. 2000d-4 (hereinafter referred to as the ACT), and all requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, "Nondiscrimination in Federally -Assisted Programs of the Department of Transportation — Effectuation of Title VI of the Civil Rights Act of 1964" (hereinafter referred to as the REGULATIONS), the Federal -aid Highway Act of 1973, and other pertinent directives, to the end that in accordance with the ACT, REGULATIONS, and other pertinent directives, no person in the United States shall, on the grounds of race, color, sex, national origin, religion, age or disability, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity for which CITY receives federal financial assistance from the Federal Department of Transportation. CITY HEREBY GIVES ASSURANCE THAT CITY will promptly take any measures necessary to effectuate this MOU. This assurance is required by subsection 21.7(a) (1) of the REGULATIONS. More specifically, and without limiting the above general assurance, CITY hereby gives the following specific assurances with respect to its federal -aid Program: 1. That CITY agrees that each "program" and each "facility" as defined in subsections 21.23 (e) and 21.23 (b) of the REGULATIONS, will be (with regard to a "program") conducted, or will be (with regard to "facility") operated in compliance with all requirements imposed by, or pursuant to, the REGULATIONS. 2. That CITY shall insert the following notification in all solicitations for bids for work or material subject to the REGULATIONS made in connection with the federal -aid Program and, in adapted from, in all proposals for negotiated agreements: CITY hereby notifies all bidders that it will affirmatively ensure that in any agreement entered into pursuant to this advertisement, disadvantaged business enterprises will be afforded full opportunity to submit bids in response to this invitation and will not be discriminated against on the grounds of race, color, sex, national original, religion, age, or disability in consideration for an award. That CITY shall insert the clauses of Appendix A of this Exhibit F in every agreement subject to the ACT and the REGULATIONS. 4. That the clauses of Appendix B of this Exhibit F shall be included as a covenant running with the land, in any deed effecting a transfer of real property, structures, or improvements thereon, or interest therein. That where CITY receives federal financial assistance to construct a facility, or part of a facility, the Assurance shall extend to the entire facility and facilities operated in connection therewith. 6. That where CITY receives federal financial assistance in the form, or for the acquisition, of real property or an interest in real property, the Assurance shall extend to rights to space on, over, or under such property. February 26, 2019 Page 23 25C-25 MOU No.: M-025-18 SCAG ProjecUOWP No.: 225-3564J2.11 7. That CITY shall include the appropriate clauses set forth in Appendix C and D of this Assurance, as a covenant running with the land, in any future deeds, leases, permits, licenses, and similar agreements entered into by the CITY with other parties: Appendix C; a) for the subsequent transfer of real property acquired or improved under the federal -aid Program; and Appendix D; b) for the construction or use of or access to space on, over, or under real property acquired, or improved under the federal -aid Program. That this assurance obligates CITY for the period during which federal financial assistance is extended to the program, except where the federal financial assistance is to provide, or is in the form of, personal property or real property or interest therein, or structures, or improvements thereon, in which case the assurance obligates CITY or any transferee for the longer of the following periods: a) the period during which the property is used for a purpose for which the federal financial assistance is extended, or for another purpose involving the provision of similar services or benefits; or b) the period during which CITY retains ownership or possession of the property. 9. That CITY shall provide for such methods of administration for the program as are found by the U.S. Secretary of Transportation, or the official to whom he delegates specific authority, to give reasonable guarantee that CITY, other recipients, sub -grantees, applicants, sub -applicants, transferees, successors in interest, and other participants of federal financial assistance under such program will comply with all requirements imposed by, or pursuant to, the ACT, the REGULATIONS, this Assurance and the MOU. 10. That CITY agrees that SCAG, the United States and the State of California have a right to seek judicial enforcement with regard to any matter arising under the ACT, the REGULATIONS, and this Assurance. 11. CITY shall not discriminate on the basis of race, religion, age, disability, color, national origin or sex in the award and performance of any SCAG assisted contract or in the administration on its DBE Program or the requirements of 49 CFR Part 26. CITY shall take all necessary and reasonable steps under 49 CFR Part 26 to ensure non-discrimination in the award and administration of SCAG assisted contracts. CITY'S DBE Implementation Agreement is incorporated by reference in this MOU. Implementation of this program is a legal obligation and failure to carry out its terms shall be treated as a violation of this agreement. Upon notification to the recipient of its failure to carry out its approved DBE Implementation Agreement, SCAG may impose sanctions as provided for under 49 CFR Part 26 and may, in appropriate cases, refer the matter for enforcement under 18 USC 1001 and/or the Program Fraud Civil Remedies Act of 1985 (31USC 3801 et seq.) February 26, 2019 Page 24 25C-26 MOUNo.: M-025-18 SCAG Project/OW No.: 225-3564J2.11 THESE ASSURANCES are given in consideration of and for the purpose of obtaining any and all federal grants, loans, agreements, property, discounts or other federal financial assistance extended after the date hereof to CITY by SCAG, and is binding on CITY, other recipients, subgrantees, applicants, sub -applicants, transferees, successors in interest and other participants in the federal -aid Highway Program. February26, 2019 Page 25 25C-27 MOU No.: M-025-18 SCAG Project/OWP No.: 225-3564J2.11 APPENDIX A TO EXHIBIT F During the performance of this Agreement, the City of Santa Ana, for itself, its assignees and successors in interest (hereinafter collectively referred to as "CITY") agrees as follows: (1) Compliance with Regulations: CITY shall comply with the regulations relative to nondiscrimination in federally assisted programs of the Department of Transportation, Title 49, Code of Federal Regulations, Part 21, as they may be amended from time to time, (hereinafter referred to as the REGULATIONS), which are herein incorporated by reference and made a part of this MOU. (2) Nondiscrimination: CITY, with regard to the work performed by it during the MOU, shall not discriminate on the grounds of race, color, sex, national origin, religion, age, or disability in the selection and retention of sub -applicants, including procurements of materials and leases of equipment. CITY shall not participate either directly or indirectly in the discrimination prohibited by Section 21.5 of the REGULATIONS, including employment practices when the agreement covers a program set forth in Appendix B of the REGULATIONS. (3) Solicitations for Sub -agreements, Including Procurements of Materials and Equipment: In all solicitations either by competitive bidding or negotiation made by CITY for work to be performed under a Sub -agreement, including procurements of materials or leases of equipment, each potential sub - applicant or supplier shall be notified by CITY of the CITY's obligations under this MOU and the REGULATIONS relative to nondiscrimination on the grounds of race, color, or national origin. (4) Information and Reports: CITY shall provide all information and reports required by the REGULATIONS, or directives issued pursuant thereto, and shall permit access to CITY's books, records, accounts, other sources of information, and its facilities as may be determined by SCAG, STATE or FHWA to be pertinent to ascertain compliance with such REGULATIONS or directives. Where any information required of CITY is in the exclusive possession of another who fails or refuses to furnish this information, CITY shall so certify to SCAG, STATE or the FHWA as appropriate, and shall set forth what efforts CITY has made to obtain the information. (5) Sanctions for Noncompliance: In the event of CITY's noncompliance with the nondiscrimination provisions of this agreement, SCAG shall impose such agreement sanctions as it or the STATE and FHWA may determine to be appropriate, including, but not limited to: (a) withholding of payments to CITY under the MOU within a reasonable period of time, not to exceed 90 days; and/or (b) cancellation, termination or suspension of the MOU, in whole or in part (6) Incorporation of Provisions: CITY shall include the provisions of paragraphs (1) through (6) in every sub -agreement, including procurements of materials and leases of equipment, unless exempt by the REGULATIONS, or directives issued pursuant thereto. CITY shall take such action with respect to any sub -agreement or procurement as SCAG, STATE or FHWA may direct as a means of enforcing such provisions including sanctions for noncompliance, provided, however, that, in the event CITY becomes involved in, or is threatened with, litigation with a sub -applicant or supplier as a result of such February 26, 2019 Page 26 25C-28 MOU No.: M-025-18 SCAG ProjecdOWP No.: 225-3564J2.11 direction, CITY may request SCAG enter into such litigation to protect the interests of SCAG, and, in addition, CITY may request the United States to enter into such litigation to protect the interests of the United States. Febnmy 26, 2019 Page 27 25C-29 MOU No.: M-025-18 SCAG ProjectIMP No.: 225-3564J2.11 APPENDIX B TO EXHIBIT F The following clauses shall be included in any and all deeds effecting or recording the transfer of PROJECT real property, structures or improvements thereon, or interest therein from the United States. (GRANTING CLAUSE) NOW, THEREFORE, the U.S. Department of Transportation, as authorized by law, and upon the condition that CITY will accept title to the lands and maintain the project constructed thereon, in accordance with Title 23, United States Code, the Regulations for the Administration of federal -aid for Highways and the policies and procedures prescribed by the Federal Highway Administration of the Department of Transportation and, also in accordance with and in compliance with the Regulations pertaining to and effectuating the provisions of Title VI of the Civil Rights Act of 1964 (78 Stat. 252; 42 U.S.C. 2000d to 2000d-4), does hereby remise, release, quitclaim and convey unto the CITY all the right, title, and interest of the U.S. Department of Transportation in, and to, said lands described in Exhibit "E" attached hereto and made a part hereof. (HABENDUM CLAUSE) TO HAVE AND TO HOLD said lands and interests therein unto CITY and its successors forever, subject, however, to the covenant, conditions, restrictions and reservations herein contained as follows, which will remain in effect for the period during which the real property or structures are used for a purpose for which federal financial assistance is extended or for another purpose involving the provision of similar services or benefits and shall be binding on CITY, its successors and assigns. CITY, in consideration of the conveyance of said lands and interests in lands, does hereby covenant and agree as a covenant running with the land for itself, its successors and assigns, (1) that no person shall on the grounds of race, color, sex, national origin, religion, age or disability, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination with regard to any facility located wholly or in part on, over, or under such lands hereby conveyed (;) (and) * (2) that CITY shall use the lands and interests in lands so conveyed, in compliance with all requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Non-discrimination in federally -assisted programs of the Department of Transportation - Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended (;) and (3) that in the event of breach of any of the above -mentioned nondiscrimination conditions, the U.S. Department of Transportation shall have a right to re-enter said lands and facilities on said land, and the above -described land and facilities shall thereon revert to and vest in and become the absolute property of the U.S. Department of Transportation and its assigns as such interest existed prior to this deed.* * Reverter clause and related language to be used only when it is determined that such a clause is necessary in order to effectuate the purposes of Title VI of the Civil Rights Act of 1964. February 26, 2019 Page 28 25C-30 MOU No.: M-025-18 SCAG ProjectlOWP No.: 225-3564J2.11 APPENDIX C TO EXHIBIT F The following clauses shall be included in any and all deeds, licenses, leases, permits, or similar instruments entered into by CITY, pursuant to the provisions of Assurance 7(a) of Exhibit F. The grantee (licensee, lessee, permittee, etc., as appropriate) for himself, his heirs, personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree (in the case of deeds and leases add "as covenant running with the land") that in the event facilities are constructed, maintained, or otherwise operated on the said property described in this (deed, license, lease, permit, etc.) for a purpose for which a U.S. Department of Transportation program or activity is extended or for another purpose involving the provision of similar services or benefits, the (grantee, licensee, lessee, permittee, etc.), shall maintain and operate such facilities and services in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, U.S. Department of Transportation, Subtitle A, Office of Secretary, Part 21, Nondiscrimination in federally - assisted programs of the Department of Transportation - Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended. (Include in licenses, leases, permits, etc.)* That in the event of breach of any of the above nondiscrimination covenants, CITY shall have the right to terminate the (license, lease, permit etc.) and to re-enter and repossess said land and the facilities thereon, and hold the same as if said (license, lease, permit, etc.) had never been made or issued. (Include in deeds)* That in the event of breach of any of the above nondiscrimination covenants, CITY shall have the right to re-enter said land and facilities thereon, and the above- described lands and facilities shall thereupon revert to and vest in and become the absolute property of CITY and its assigns. * Reverter clause and related language to be used only when it is determined that such a clause is necessary in order to effectuate the purposes of Title VI of the Civil Rights Act of 1964. Febmary 26, 2019 Page 29 25C-31 MOU No.: M-025-18 SCAG ProjectlOWP No.: 225-3564J2.11 APPENDIX D TO EXHIBIT F The following shall be included in all deeds, licenses, leases, permits, or similar agreements entered into by the CITY, pursuant to the provisions of Assurance 7 (b) of Exhibit F. The grantee (licensee, lessee, permittee, etc., as appropriate) for himself, his personal representatives, successors in interest and assigns, as a part of the consideration hereof, does hereby covenant and agree (in the case of deeds, and leases add "as a covenant running with the land") that: (1) no person on the ground of race, color, sex, national origin, religion, age or disability, shall be excluded from participation in, denied the benefits of, or otherwise subjected to discrimination in the use of said facilities; (2) that in the construction of any improvements on, over, or under such land and the furnishing of services thereon, no person on the ground of race, color, sex, national origin, religion, age or disability shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination; and (3) that the (grantee, licensee, lessee, permittee, etc.,) shall use the premises in compliance with the Regulations. (Include in licenses, leases, permits, etc.)* That in the event of breach of any of the above nondiscrimination covenants, CITY shall have the right to terminate the (license, lease, permit, etc.) and to re-enter and repossess said land and the facilities thereon, and hold the same as if said (license, lease, permit, etc.) had never been made or issued. (Include in deeds)* That in the event of breach of any of the above nondiscrimination covenants, CITY shall have the right to re-enter said land and facilities thereon, and the above- described lands and facilities shall thereupon revert to and vest in and become the absolute property of CITY, and its assigns. * Reverter clause and related language to be used only when it is determined that such a clause is necessary in order to effectuate the purposes of Title VI of the Civil Rights Act of 1964. February 26, 2019 Page 30 25C-32 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JUNE 18, 2019 TITLE: ADOPT A RESOLUTION ESTABLISHING THE APPROPRIATION LIMIT OF THE CITY OF SANTA ANA FOR FY 2019-20, AS REQUIRED BY STATE LAW (STRATEGIC PLAN NO. 4, 1D) CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 161 Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER CITY MANAGER RECOMMENDED ACTION Adopt a resolution establishing the appropriation limit for the fiscal year 2019-20, as required by State law. DISCUSSION The State of California Constitution includes various provisions, which impose a limit ("the GANN Limit") on tax proceeds that may be appropriated for expenditures by a local government in any given fiscal year and requires the cities establish this limit by resolution. Adoption of the subject resolution is necessary for compliance with these provisions for the fiscal year ending June 30, 2020. As detailed in the exhibits to the subject resolution, the City's spending limitation from "Proceeds of Taxes" is calculated to be $1,132,077,815 (Exhibit 1) for the fiscal year 2019-20. This represents the permitted growth rate factor of 1.0415 times the fiscal year 2018-19 appropriations limit of $1,086,968,617. The funds constrained by the appropriations limit include the General Fund, the Capital Outlay Fund, and Special Revenue Funds. Additionally, Exhibit 1 identifies the factors used to determine the allowable increase from the prior year; Exhibit 2 categorizes FY 2019-20 anticipated revenues from "Proceeds of Taxes" and "Non - Proceeds of Taxes'; and Exhibit 3 computes the fiscal year 2019-20 appropriations subject to this limitation and also identifies the difference between the limit and the budgeted appropriation. As demonstrated in Exhibit 3, the City's anticipated fiscal year 2019-20 appropriation subject to limitation is $245,301,295, which is $886,776,520 below the GANN Limit (allowable limit). 55A-1 Resolution Establishing the Appropriation Limit of The City of Santa Ana for FY 2019-20 June 18, 2019 Page 2 STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal # 4 City Financial Stability, Objective # 1 (maintain a stable, efficient and transparent financial environment), Strategy D (develop a fiscal health analysis tool that informs a department of its financial position in order to assist in its decision making process). FISCAL IMPACT There is no fiscal impact associated with this action. Kathryn Dow Executive Director Finance and Management Services Agency Exhibits: 1. Computation of Appropriation Limit 2. Schedule to Categorize Anticipated Revenues 3. Appropriation Subject to Limitation 4. Resolution 55A-2 COMPUTATION OF APPROPRIATION LIMIT FOR FISCAL YEAR ENDING JUNE 30, 2020 Fiscal Year 2018-19 Appropriations Limit California Per Capita Personal Income: Converted into a Factor Population Growth: Converted into a Factor: Calculation of factor for fiscal year 2019-20 (1.0385 x 1.0029): Fiscal Year 2019-20 Appropriations Limit EXHIBIT 1 1,086,968,617 3.850% * 1.0385 0.29% * 1.0029 1.0415 1,132, 077,815 * Source: State of California, Department of Finance, Price and Population Information - FY 2019-20 55A-3 55A-4 EXHIBIT 2 EXHIBIT 2 SCHEDULE TO CATEGORIZE ANTICIPATED REVENUES FOR FISCAL YEAR ENDING JUNE 30, 2020 REVENUE TAXES: Property Tax Sales Tax Hotel Visitors' Tax Business Tax Documentary Stamp Tax Utility Users' Tax Medical Marijuana/Cannabis Tax Total Taxes FROM STATE: State Motor Vehicle License Homeowner Prop Tax Subvention State Gas Tax SB90 Reimbursements State Grants Total State OTHER GOVERNMENT: Community Development (CDBG) Urban Area Security Initiative Grant Social Services Agency Grant Housing (Section 8) Workforce Investment Act Measure M, Street Grants Civic Center and Park Program Income Other Federal Grants Total Other Government PROCEEDS NON -PROCEEDS OF TAXES OF TAXES TOTALS 81,107,300 $ - $ 81,107,300 113,878,800 - 113,878,800 9,500,000 - 9,500,000 13,000,000 - 13,000,000 884,000 - 884,000 22,500,000 - 22,500,000 10,830,000 - 10,830,000 251,700,100 - 251,700,100 160,000 - 160,000 201,000 - 201,000 - 14,421,080 14,421,080 88,000 88,000 - 1,397,360 1,397,360 361,000 15,906,440 16,267,440 - 6,194,750 6,194,750 - 1,819,030 1,819,030 - 800,000 800,000 - 44,229,570 44,229,570 - 2,493,170 2,493,170 - 19,484,780 19,484,780 - 7,503,000 7,503,000 - 512,500 512,500 - 1,815,340 1,815,340 - 84,862,140 84,852,140 55A-5 Exhibit 2 Continued REVENUE LOCALLY RAISED: Licenses and Permits Franchise Fees Fines and Forfeitures Charges for Services From Use of Property Others Others - Inter -Agency Total Locally Raised OTHER MISCELLANEOUS: Donation Attorney Reimbursements Expense Reimbursements Indirect Cost Recovery Refuse Program Savings Interfund Transfers Total Other Miscellaneous FROM USE OF MONEY: Earnings on Investment TOTAL REVENUES PROCEEDS NON -PROCEEDS OF TAXES OF TAXES TOTALS - 6,777,600 6,777,600 - 3,364,000 3,364,000 - 6,052,300 6,052,300 - 33,262,400 33,262,400 - 16,450,700 16,450,700 - 5,825,100 5,825,100 - 6,755,740 6,755,740 - 78,487,840 78,487,840 20,000 700,000 2,037,900 2.839,300 1,352,000 9,495,300 16,444,500 641,200 532,300 20,000 700,000 2,037,900 2,839,300 1,352,000 9,495,300 16,444,500 1,173,500 $ 252,702,300 $ 196,223,220 $ 448,925,520 y EXHIBIT 3 APPROPRIATION SUBJECT TO LIMITATION FOR FISCAL YEAR ENDING JUNE 30, 2020 Proceeds of taxes Less: Exclusions Appropriation subject to limitation Current year limit Over(under) limit EXHIBIT 3 $ 252,702,300 (7,401,005) $ 245,301,295 1,132,077,815 $ (886,776,520) 55A-7 y • EXHIBIT 4 ROH: 06/18/19 RESOLUTION NO. 2019- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ESTABLISHING THE APPROPRIATION LIMIT OF THE CITY OF SANTA ANA FOR FISCAL YEAR 2019-2020 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. Article XIIIB of the Constitution of the State of California, adopted by the voters of the State of California in 1979, imposes upon State and local government the obligation to limit each fiscal year's appropriations to those established in fiscal year 1978-79 as adjusted for by inflation and population, together with other specified changes required or permitted. B. In June of 1990, the voters of the State of California approved Proposition 111, which amended Article XIIIB to establish the limit originally calculated for fiscal year 1986-87 as a new adjustment base, and to change the definition of the cost of living to be either the percentage change in California per capita personal income from the preceding year or the percentage change in the local assessment roll from the preceding year for the jurisdiction due to the addition of local non-residential new construction. C. Proposition 111 further modified Article XIIIB requirements by making certain capital outlay, debt service, emergency and court ordered expenditures not subject to the limit, and by allowing expenditures in excess of one year's limit to be offset by under expenditures in an immediately following year. D. The City of Santa Ana has opted to use as the inflation adjustment factor, the percentage change in the California per capita personal income from the preceding year. E. The City of Santa Ana has opted to use as the population adjustment factor, the County's percentage change in population from the preceding year. F. Section 7910 of the Government Code of the State of California requires the governing body of each local jurisdiction each year to, by resolution, establish its appropriations limit and make other necessary determinations for the following fiscal year pursuant to Article XIIIB of the California Resolution 2019- 55A-9 Page 1 of 3 Constitution at a regularly scheduled meeting or noticed special meeting. Fifteen days prior to the meeting, documentation used in the determination of the appropriations limit and other necessary determinations shall be available to the public. G. This matter came before the City Council at its regularly scheduled meeting of June 18, 2019. H. The Executive Director of the Finance and Management Services Agency of the City of Santa Ana has determined the City's appropriation limit for fiscal year 2019-2020 in accordance with said provisions of the Constitution and laws of the State of California, and the documentation used in the determination has been available to the public since not later than June 3, 2019, in the office of the Executive Director of the Finance and Management Services Agency. Section 2. Based upon the above referenced facts, and all facts specified in the accompanying Request for Council Action and its attachments, and each of them, the appropriation limit of the City of Santa Ana for fiscal year 2019-2020 is hereby found and determined to be $1,132,077,815. Section 3. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this day of 2019. APPROVED AS TO FORM: Sonia R. Carvalho City Attorney Ryan O. Ho e V Assistant City Attorney Miguel A. Pulido Mayor Resolution 2019- 55A-10 Page 2 of 3 AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Norma Mitre -Ramirez, Acting Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2019- to be the original resolution adopted by the City Council of the City of Santa Ana on June 18, 2019. Date: Acting Clerk of the Council City of Santa Ana 55A-11 Resolution 2019- Page 3 of 3 55A-12 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JUNE 18, 2019 TITLE: ADOPT RESOLUTION APPROVING CITY'S ANNUAL STATEMENT OF INVESTMENT POLICY FOR FISCAL YEAR 2019-20; RECEIVE AND FILE ANNUAL STATEMENT OF INVESTMENT POLICY FOR FISCAL YEAR 2019-20 (STRATEGIC PLAN NO. 4, 1) CI MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Adopt a Resolution approving the City's Annual Statement of Investment Policy for Fiscal Year 2019-20 (Investment Policy). 2. Receive and file the Annual Statement of Investment Policy for Fiscal Year 2019-20. DISCUSSION In accordance with State law, the Finance and Management Services Agency annually submits a resolution approving the City's Annual Statement of Investment Policy for Fiscal Year (FY) 2019-20 (Exhibit 1). The Investment Policy outlines the following primary goals (Exhibit 2): • To assure compliance with all Federal, State, and local laws governing the investment of monies. • To provide for the safety of principal. • To provide for the maintenance of sufficient liquidity; and • To provide an investment return within the parameters of the of the Investment Policy and related Portfolio guidelines. The Investment Policy applies to all financial assets of the City with the exception of individual employee retirement contribution funds and deferred compensation accounts which are specifically excluded. Bond proceeds are restricted and are invested in compliance of this investment policy following the specific requirements of their applicable bond resolutions. Furthermore, staff continuously evaluates the City's policy with regards to industry standards and best practices to 55B-1 Annual Statement of Investment Policy June 18, 2019 Page 2 determine if any newly adopted state rules or regulations are required to be incorporated within the document or if any industry enhancements are recommended. Last year as a result of staffs research and analysis, substantive changes were made for the 2018-19 FY Annual Statement of Investment Policy. The revised policy was submitted to the Investment Policy Certification Committee of the Association of Public Treasurers of the United States & Canada (APTUS&C) and the California Municipal Treasurers Association (CMTA) for re -certification. During the course of the current fiscal year, the City of Santa Ana received Investment Policy Certifications from both the APTUS&C at the international North American level (Exhibit 3) and the CMTA at the state level (Exhibit 4). Only a handful of California cities currently hold dual certification. For FY 19-20 staff is recommending limited changes that are generally of a non -substantial nature. These proposed changes have been incorporated into the recommended City of Santa Ana Investment Policy Statement for FY 2019-20. The changes include, but are not limited to the following: • Addition of Appendix containing Broker/Dealer Questionnaire and Certification Form • Amendment of section on Authorized Investments to set an A-1 rating threshold for the purchase of Other State of California Local Agency Bonds • Amendment of section on Ineligible Investments to clarify status of purchases previously allowed under State Code • Amendment of section on Safekeeping and Custody and addition to Glossary of Referenced Terms to include definitions for the terms "Perfected Interest' and "Delivery vs. Payment'. • Update of California Debt and Investment Advisory Commission (CDIAC) Guidelines for Allowable Investment Instruments per State Government Code (As of January 1, 2019) Applicable to all Local Agencies • Update of California Investment Code Abstracts These changes continue to reflect new certification organization requirements mirroring the policy consensus of the Association of Public Treasurers of the United States & Canada and the California Municipal Treasurers Association. STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal No. 4 City Financial Stability, Objective No. 1 (Maintain a stable, efficient and transparent financial environment). 55B-2 Annual Statement of Investment Policy June 18, 2019 Page 2 FISCAL IMPACT There is no fiscal impact associated with this action. 64� Kathryn Down , CPA Executive Director & City Treasurer Finance and Management Services Agency Exhibits: 1. Resolution 2. Annual Statement of Investment Policy 3. Association of Public Treasurers of the United States & Canada (APTUS&C) Investment Policy Certification Letter 4. California Municipal Treasurers Association (CMTA) Investment Policy Certification Letter & News Release 55B-3 55B-4 EXHIBIT 1 RESOLUTION NO.2019- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE CITY'S ANNUAL STATEMENT OF INVESTMENT POLICY 2019-20 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of Santa Ana hereby finds, determines and declares as follows: A. California Government Code §53646, provides that each city may have a written statement of investment policy to govern investment of the City's monies. B. Pursuant to §53646, the City Treasurer shall annually submit statement of investment policy for City Council consideration. C. The City Treasurer has submitted the attached Statement of Investment Policy 2019-20 to this Council at its regular meeting of June 18, 2019, for its consideration. Section 2. The City Council of the City of Santa Ana has duly considered and approves the City's statement of investment policy submitted by the City Treasurer. Section 3. The City Treasurer shall submit quarterly reports to the City Council stating all investments made in the preceding quarter and that such investments have been made in conformance with the City's investment policy. Section 4. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this day of 2019. Miguel A. Pulido Mayor Resolution No. 2019-XXX Page 1 of 2 55B-5 APPROVED AS TO FORM: Sonia Carvalho, City Attorney By:�.—fie Lisa 8torck Assistant City Attorney AYES: Councilmembers: NOES: Councilmembers: ABSTAIN: Councilmembers: NOT PRESENT: Councilmembers: CERTIFICATION OF ATTESTATION AND ORIGINALITY I, NORMA MITRE, Acting Clerk of the Council, do hereby attest to and certify the attached Resolution No. to be the original resolution adopted by the City Council of the City of Santa Ana on 2019. Date: Resolution No. 2019-XXX Page 2 of 2 Acting Clerk of the Council City of Santa Ana I 55B-6 EXHIBIT 2 vAa7IR JUNE 18, 20191`` SA, I *(,-A;���p1111111111111111111�;�����_� ��� �►,� �� Fo Annual INVESTMENT POL STATEMENT 2019=20 ih �r TABLE OF CONTENTS Page Introduction...............................................................................................................................1 1.0 Policy..............................................................................................................................1 2.0 Scope.............................................................................................................................1 3.0 Prudence.........................................................................................................................2 4.0 Objectives........................................................................................................................3 5.0 Delegation of Authority....................................................................................................6 6.0 Ethics and Conflicts of Interest........................................................................................7 7.0 Authorized Financial Institutions and Qualified Broker-Dealers..........................................7 8.0 Authorized and Suitable Investments.....................................................................8 9.0 Prohibited Investments and Investment Practices.........................................................13 10.0 Investment Pools/Mutual Funds....................................................................................14 11.0 Collateral/Security for Deposit of Public Funds..............................................................16 12.0 Safekeeping and Custody.............................................................................................16 13.0 Diversification................................................................................................................17 14.0 Maximum Maturities......................................................................................................17 15.0 Internal Controls............................................................................................................18 16.0 Performance Standards................................................................................................19 17.0 Reporting......................................................................................................................19 18.0 Policy Considerations...................................................................................................20 19.0 Policy Review, Certification, and Adoption....................................................................21 20.0 Appendices and Glossaries............................................................................................21 Appendix I - (Table of Appendices) / California Investment Code Abstracts..................23 Appendix II - Local Agency Investment Guidelines / Allowable Investment Guidelines ...i Appendix III - Glossary of Common Public Local Agency Investment Terms ................. A Appendix IV - Glossary of Common Public Local Agency Investment Terms...................I Appendix V — Broker/Dealer Questionnaire and Certification Form................................M City of Santa Ana - Annual Statement of Investment Policy Tab ��ny�nts July 1, , 20 - jf June 3020 CITY OF SANTA ANA ANNUAL STATEMENT OF INVESTMENT POLICY JULY2019 INTRODUCTION: The purpose of this Statement of Investment Policy is intended to provide specific criteria for the prudent investment of City of Santa Ana (City) funds and to set investment objectives, policies, establish guidelines, and define responsibilities for the investment of idle or unexpended funds for the City. The ultimate investment goal is to enhance the economic status of the City while protecting funds under management and meeting the daily cash flow demands of the City. i K1M 1•1 q 1Wd The policy of the City of Santa Ana is to invest idle or unexpended funds within the scope of this investment policy in a prudent and suitable manner that will provide, within the parameters of this investment policy, the highest reasonable investment return relative to the risk being assumed while maintaining maximum security and meeting all cash flow demands. This policy is intended to comply with Federal law and the Code of California for investment of public funds. In instances in which this policy is more restrictive than Federal or State law, this policy shall be controlling. This policy is fixed and general in nature; it defines authorized investments and guides the investment decisions and security selection process. The City's Investment policy will be regularly reviewed and adjusted to create an investment portfolio that is suitable for the City given current conditions. 2.0 SCOPE 2.1 Applicability of Investment Policy This investment policy applies to all funds and investment transactions of the City. These funds are accounted for in the Comprehensive Annual Financial Report, which includes the following: • General Fund • Special Revenue Funds • Capital Projects Funds (includes restricted bond proceeds) • Enterprise Funds (includes restricted bond proceeds) • Trust and Agency Funds • Internal Service Funds • Any new fund created by the City of Santa Ana, unless specifically exempted of Santa Ana - Annual Statement of Investment Policy 2019 - June 30, 2020 The restricted bond proceeds are invested in compliance with this investment policy and applicable bond resolutions. Individual employee retirement contribution funds and deferred compensation are excluded from this policy. 2.2 Pooling of Funds Except for cash in certain restricted and special funds, the City of Santa Ana will consolidate cash balances from all funds to maximize investment earnings and to increase efficiencies with regard to investment pricing, safekeeping and administration. Investment income will be allocated to the various funds based on their respective participation and in accordance with generally accepted accounting principles. 3.0 PRUDENCE 3.1 Standard of Care — Prudent Investor The City investment program shall be managed in a professional and prudent manner worthy of the public trust and review. The standard of prudence to be used by City investment officials shall be the "prudent investor rule" standard and shall be applied in the context of managing the overall investment portfolio. The "prudent investor rule" provides, pursuant to California Government Code Section 53600.3, that investments shall be made with judgment and care. When investing, reinvesting or managing public funds a trustee shall act with care, skill, prudence and diligence under circumstances then prevailing. Investment officers acting in accordance with written procedures and this investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from exceptions are reported in a timely fashion and the liquidity and the sale of securities are carried out in accordance with the terms of this policy. The City is governed by the California Government Code, Sections 16429.1 and Title 5, Division 2, Part 1, Chapter4, entitled Financial Affairs, commencing with section 53630. Each investment transaction and the entire portfolio must comply with California Government Code, Sections 53600 and 53635 et seq. and this policy. 3.2 Written Investment Procedures City investment officials shall establish written investment procedures consistent with this investment policy for the operation of the investment program. Procedures should include but not be limited to: authorized personnel, segregation of duties, internal controls, wire transfer agreements, daily cash flow review, basis for awarding bids, portfolio inventory, and reporting. The procedures document is intended to provide guidance for staff and to provide continuity in the event of an interruption of services of the Treasury and Customer Services Manager and/or Assistant Finance Director. City of Santa Ana- Annual July 1, 2019 - Statement of Investment Policy 5MVZ 1 0 June 30, 2020 4.0 OBJECTIVES The primary objectives, in priority order, for the City of Santa Ana's investment activities shall be Safety, Liquidity, and Yield: 4.1 Safety Of Principal Safety of principal is the foremost objective of the City of Santa Ana, care must be taken to ensure the preservation of capital and the protection of principal. Each investment transaction shall be undertaken in a manner that seeks to ensure preservation of capital in the overall portfolio. The objective will be to mitigate credit risk and interest rate risk by following guideline listed below. A. Credit Risk Credit Risk is the risk of loss due to the failure of the security issuer or backer to redeem the outstanding debt at the stated maturity date. Credit risk also applies to the overall market perception of the financial strength and capacity of the issuer. The City of Santa Ana will minimize credit risk by: Limiting investments to authorized investments as set forth in Section 10.0 of this investment policy; ii. Pre -qualifying the financial institutions, broker/dealers, intermediaries, and advisors with which the City will do business; iii. Diversifying the investment portfolio so that potential losses on individual securities will be minimized. iv. Holding a minimum percentage of the total portfolio in highly marketable short-term treasuries, checking with interest, government pooled account, or a combination of all three. The minimum percentage shall be set monthly by the FMSA Investment Advisory Committee based on a rolling twenty-four month analysis of the City's minimum cash position requirements adjusted for any exceptional anticipated cash out flows. B. Market or Interest Rate Risk Market or interest rate risk is the risk that the market value of securities in the portfolio may fall due to changes in general interest rates. The City of Santa Ana will minimize interest market interest rates, by: i. Structuring the Fund so that securities mature to meet cash City of Santa Ana - Annual July 1, 2019 - Statement of Investment Policy June 30, 2020 requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity, and ii. Purchasing investments with the intent to hold until maturity; and iii. By investing operating funds primarily in shorter -term securities, money market mutual funds, or similar investment pools and limiting the average maturity of the portfolio in accordance with this policy. 4.2 Liquidity The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated demands (static liquidity). Furthermore, since all possible cash demands cannot be anticipated, the portfolio should consist largely of securities with active secondary or resale markets (dynamic liquidity). The City's cash flow shall be updated on a daily basis and will be considered prior to the investment of securities, which will reduce the necessity to sell investments for liquidity purposes. 4.3. Yield The City's investment portfolio shall be designed with the objective of attaining a market -average rate of return throughout budgetary and economic cycles taking into account the investment risk constraints and liquidity needs. The return on investments is to be accorded secondary importance compared to the safety and liquidity objectives described above. The core of investments will focus on relatively low risk securities with an expectation of earning a reasonable return relative to the risk being assumed. It is the general policy of the City to hold investments until market value equals or exceeds amortized cost or book value of the security. Securities shall not be sold prior to maturity with the following exceptions: A. a declining credit security could be sold early to minimize loss of principal; B. a simultaneous purchase of a security and the sale of another (security swap) to enhance the quality, yield, or target duration in the portfolio; or C. a sale of a specific security prior to its maturity and a capital gain or loss recorded in order to improve the credit quality, liquidity, or rate of return of the portfolio in response to market conditions and/or City risk City of Santa Ana - Annual July 1, 2019 - Statement of Investment Policy %�41 2 June 30, 2020 preferences. D. general liquidity needs of the investment portfolio require that a security be sold; E. prepayment of City debt or contribution servicing obligation. In the event the City is presented with an option for prepayment of a City debt or contribution servicing obligation, the following analysis will be conducted by Treasury investment staff with regards to a comparison between the amortized savings which may be realized by exercising such prepayment option and: i. the current portfolio yield; ii. the trend of the debt or contribution servicing obligation; ill. whether variances in the trend are substantial; iv. the City's net cash position; and v. the market value of investment instrument(s) recommended by Treasury staff to be liquidated to fulfill a prepayment election. Upon completion of said analysis, a recommendation shall be presented to the FMSA Investment Advisory Committee for consideration for approval or rejection. When selling a security prior to maturity, City investment officials and/or officers (see generally subsection 5.1 et seq. - Investment Authority and Responsibility) must be prepared to justify the reasons and explain any gains or losses. Compliance with the investment policy does not measure return, but rather manages risk. Policy compliance does not provide a benchmark to meet or exceed, but is a model to follow. The City will benchmark its investment portfolio performance to the appropriate "treasuries constant maturity' rate based on portfolio maturities of the investment plan. The City shall strive to maintain one hundred percent (100%) investment of idle funds after consideration for a compensating balance to cover the cost of services provided by the City's depository bank. The funds available for investment are determined by cash flow projections updated daily. Investments are monitored so that legal limits on types of investments are not exceeded. City of Santa Ana - Annual July 1, 2019 - Statement of Investment Policy %� 51 June 30, 2020 5.0 DELGATION OF AUTHORITY 5.1 Investment Authority and Responsibility The authority for conducting investment transactions resides with the Executive Director of Finance and Management Services Agency (FMSA) as chief fiscal officer and ex officio City Treasurer. The Executive Director for (FMSA) under the general direction of the City Council, shall be responsible for all investment transactions undertaken and shall establish a system of controls to regulate the investment activities of subordinate officials. 5.2 Delegation of Authority The Executive Director for FMSA or his/her designees shall invest all funds for the City in accordance with the City adopted investment policy. The Executive Director for FMSA hereby delegates day-to-day responsibility for the investment of City funds first to the FMSA Treasury and Customer Services Manager, holding managerial and supervisory responsibility over the treasury and investment functions of the FMSA Treasury and Customer Service Division (Treasury), and second, in an acting oversight capacity, to the Assistant Director of Finance, holding assistant executive management responsibilities over FMSA. Each designee shall act in accordance with the established policies and internal controls set forth in the investment policy. 5.3 Assignment of Activities Supporting and ancillary activities, including but not limited to: cash flow analysis, municipal or corporate bond credit worthiness evaluation, investment risk assessment, portfolio analysis, purchase and sale recommendation, safekeeping, policy and investment procedures review recommendation, and monthly and quarterly reporting, may be assigned to qualified persons within Treasury as deemed appropriate by the Treasury and Customer Services Manager and/or Assistant Finance Director. 5.4 Qualified Persons Qualified persons shall refer to: (1) persons holding either a California Municipal Treasurers Association, California Treasury Certificate and/or Certified California Municipal Treasurer Certificate; or an Association of Public Treasurers of the United States and Canada, Certified Public Finance Administrator Certificate, or a National Association of State Treasurers Certificate in Public Treasury Management; or (2) persons who are performing investment related duties under the guidance and direction of certificate holders. City of Santa Ana - Annual July 1, 2019 - Statement of Investment Policy 5W 1 4 June 30, 2020 6.0 ETHICS AND CONFLICTS OF INTEREST 6.1 Investment Officials and Officers Investment officials, officers, and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions. Investment officials, officers and employees shall disclose any material interests in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Investment officials, officers and employees shall refrain from undertaking. personal investment transactions with the same individual with whom business is conducted on behalf of the City of Santa Ana. 6.2 Statement of Economic Interests Investment officials and officers authorized to approve investment decisions shall be required to submit an annual Statement of Economic Interests, also known as a Form 700 in accordance with California Government Code, Section 1090 et seq. The Form 700 provides transparency and ensures accountability in two ways: 1) It provides necessary information to the public about official's/officer's personal financial interests to ensure that officials and officers are making decisions in the best interest of the public and not enhancing their personal finances. 2) It serves as a reminder to the public official of potential conflicts of interest so the official or officer can abstain from making or participating in governmental decisions that are deemed conflicts of interest. 7.0 AUTHORIZED FINANCIAL INSTITUTIONS AND QUALIFIED BROKER -DEALERS 7.1 Authorized Financial Institutions The City shall transact business only with banks, savings and loans and registered investment securities dealers. 7.2 Qualified Broker -Dealers The purchase by the City of any investment other than those purchased directly from the issuer, shall be purchased either from an institution licensed by the State as a Broker -Dealer, as defined in Section 25004 of the Corporations Code and registered with Financial Industry Regulatory Authority (FINRA), or a member of a Federally regulated securities exchange, a National or State -Chartered Bank, a Federal or State Association (as defined by Section 5102 of the Financial Code), or a brokerage firm designated as a Primary Government Dealer by the Federal Reserve Bank, and who is registered with FINRA. City of Santa Ana - Annual July 1, 2019 - Statement of Investment Policy 5557 5 June 30, 2020 7.3 Selection Process - City of Santa Ana Broker -Dealer Questionnaire The City's Treasury investment staff shall investigate all institutions which wish to do business with the City as a Qualified City of Santa Ana Broker -Dealer, in order to determine if they are adequately capitalized, make markets in securities appropriate to the City's needs, certify having read and understood the City of Santa Ana Annual Statement of Investment Policy and agreeing to abide by the conditions set forth therein. This will be done by having the Financial Institutions complete and return the appropriate City of Santa Ana Broker -Dealer Questionnaire, along with their most current FINRA Report and Audited Financial Statement (available within one -hundred, twenty (120) days of the Institution's fiscal year-end). Audited Financial Statements may be made available online. Financial Institutions currently certified as Qualified City of Santa Ana Broker -Dealers shall complete and return the appropriate City of Santa Ana Broker -Dealer Questionnaire bi-annually, but shall be subject to the Audited Financial Statement and FINRA annual reporting requirements annually. However, if the interaction with a currently certified Qualified City of Santa Ana Broker -Dealer is limited to investment trades through an electronic trading platform, then the Broker -Dealer is exempt from completion of a questionnaire, but shall remain subject to the Audited Financial Statement and FINRA reporting requirements annually. 7.4 Selection Criteria In selecting external Broker -Dealers, past performance, stability, financial strength, reputation, area of expertise, and willingness and ability to provide the highest investment return at the lowest cost to the City within the parameters of this Investment policy and the California Government Code shall be primary considerations. Investment staff will only conduct business with registered representatives of broker -dealers that have a minimum of three (3) years continuous experience working for a primary dealer or five (5) years continuous experience working for a non -primary dealer. Investment staff will only purchase or sell securities from registered representatives that possess an active Series 7 license, an active Series 66 license, or an active Series 63 license, and who submit a FINRA form U4 (employment history) and a current FINRA form U5 Disclosure Statement and have completed the City's Broker -Dealer questionnaire. 7.5 List of Approved Financial Institutions/Qualified Broker -Dealers The Treasury and Customer Services Manager shall maintain a list of Financial Institutions/Qualified Broker -Dealers authorized to provide investment services to the City, along with their FINRA Report. 8.0 AUTHORIZED AND SUITABLE INVESTMENTS 8.1 Allowable Investment Instruments — State Law California Government Code Section 53601 establishes allowable investment City of Santa Ana - Annual pp July 1, 2019 - Statement of Investment Policy M 1 6 June 30, 2020 instruments applicable to all local agencies along with maximum maturities, maximum specified percentages of total portfolio, and minimum quality requirements. Section 53601.1 authorizes local agencies to invest in financial futures or financial option contracts in any of the allowable investment categories enumerated in section 53601. 8.2 Authorized Investments City of Santa Ana further restricts permitted investments to those listed below and where applicable, Santa Ana may reduce maximum maturities, or maximum specified percentages of total portfolio (concentration limits), and may increase minimum quality requirements. Within this scope, the City diversifies its investments by types of investments, maturity dates, concentration limits, and quality requirements. 0 Purchases of this category shall not exceed five years to maturity. There is no percentage limit in this category. B. Obligations issued by a Federal Agency or a United States Government Sponsored Enterprise. Federal Agency Issues include, but are not limited to GNMA (Government National Mortgage Association), FFCB (Federal Farm Credit Bank), FHLB (Federal Home Loan Bank), FHLMC (Federal Home Loan Mortgage Corporation), FNMA (Federal National Mortgage Association), FHA (Federal Housing Administration), and TVA (Tennessee Valley Authority). Although there is no percentage limitation on these issues, purchases of this category shall not exceed five years to maturity and the "prudent investor" rule shall apply for a single agency name as U.S. Government backing is implied rather than guaranteed. C. Q the United States. Investments under this subdivision shall be rated "AA" or better by an NRSRO and shall not exceed thirty (30%) percent of the cost value of the investment portfolio. the Federal Reserve System. Purchases of banker's acceptances may not exceed one hundred eighty (180) days or forty percent (40%) of the cost value of the Fund which may be invested pursuant to this section. However, no more than thirty percent (30%) of the City's cost value of the investment portfolio may City of Santa Ana - Annual July 1, 2019 - Statement of Investment Policy %� 91 7 June 30, 2020 E. be invested in the banker's acceptances of any one commercial bank pursuant to this section. Rating Organization (NRSRO). The entity that issues the commercial paper shall be organized and operating within the United States, as a general corporation, shall have total assets in excess of five -hundred, million dollars ($500,000,000), and has debt other than commercial paper, if any, that is rated "A" or higher by NRSRO. The entity is organized within the United States as a special purpose corporation, trust, or limited liability company; has program wide credit enhancements including, but not limited to: over-collateralization, letters of credit, or a surety bond; has commercial paper that is rated "A-1" or higher, or the equivalent, by an NRSRO Eligible commercial paper shall have a maximum maturity of two hundred seventy (270) days or less. The City may purchase no more than ten percent (10%) of the outstanding commercial paper of any single corporate issue. Purchases of commercial paper may not exceed twenty-five percent (25%) of the investment portfolio. Repurchase Agreements. For purposes of this section, the term "repurchase agreement" means a purchase of securities by the local agency pursuant to an agreement by which the seller will repurchase the securities on or before a specified date and for a specified amount and will deliver the underlying securities to a third -party custodian. The City may invest in repurchase agreements with primary dealers of the Federal Reserve with which the City has entered into a Securities Industry and Financial Markets Association (SIFMA) Master Repurchase Agreement (MRA) which specifies terms and conditions of repurchase agreements. The market value of securities used as collateral for repurchase agreements shall not be allowed to fall below one hundred two percent (102%) of the value of the repurchase agreement and shall be adjusted no less than quarterly by the tri-party custodial agent. The investments in repurchase agreements shall be in compliance if the underlying securities are brought back up to one hundred two percent (102%) no later than the next business day. The underlying collateral shall be limited to United States Government Treasury Bills, Notes, and Bonds, or obligations issued by a Federal Agency or United States Government Sponsored Enterprises obligations. Upon the written approval of the Executive Director for FMSA, substituted securities may be pledged for collateral but shall consist only of investments permitted within this investment policy with a maximum maturity of five (5) years. If there is a default of the broker, the collateral securities can be sold. Since the securities are valued daily, it is likely that the sale proceeds will equal or exceed the value of the repurchase agreement amount. Purchases in this category shall not exceed one (1) year or twenty percent (20%) of the cost value of the investment portfolio. Retail repurchase agreements and reverse agreements shall not be authorized for purchase. City of Santa Ana - Annual July 1, 2019 - Statement of Investment Policy 5W� 8 June 30, 2020 el of a foreign bank. However, the City shall not invest in negotiable certificates of deposit issued by a state or federal credit union if a member of the City Council or any City personnel with investment decision making authority also serves on the board of directors, or any committee appointed by the board of directors, or the credit committee or the supervisory committee of the state or federal credit union issuing the negotiable certificates of deposit. The City's investment in negotiable certificates of deposit may not exceed thirty percent (30%) of the cost value of the investment portfolio. The amount so invested shall be subject to the limitations of Government Code Section 53638 which generally provides that the deposit shall not exceed the shareholders equity of any depository bank, or the total net worth of any depository savings association or federal association, or the total of the unimpaired capital and surplus of an insured industrial loan company. Purchases of this category shall not exceed five years to maturity. H. Local Agency Investment Fund - State Pool. The City may invest in the Local Agency Investment Fund (LAIF) established by the State Treasurer under California Government Code Section 16429.1 for the benefit of local agencies. LAIF provides daily liquidity; therefore, there is no final stated maturity for this investment category. Although there is no percentage limitation on this fund, the "prudent investor' rule shall apply for a single agency name. In keeping with LAIF deposit limit investments, City LAIF investments shall not exceed $65 million, unless a greater deposit limit for regular accounts is authorized by the State Treasurer during the term of this Statement of Investment Policy, in which case City LAIF investments may increase up to that limit. I. City of Santa Ana Bonds. The City may invest in bonds issued by the City or agency of the City including bonds payable solely out of the revenues from a revenue -producing property owned, controlled, or operated by the City or agency of the City. The City shall at all times adhere to restrictions and limitations of the bond indenture. Purchases of this category shall not exceed five years to maturity. There is no percentage limit in this category. J. Other State of Califomia Local Agency Bonds. The City may invest in other State of California Local Agency Bonds. notes, warrants or other evidence of indebtedness of any local agency within this state, including bonds payable solely out of the revenues from a revenue -producing property owned, controlled, or operated by the. local agency, or by a department, board, agency, or authority of the local agency. Investments in this category shall be restricted to instruments that have a ranking of A-1 or higher, or the equivalent by not less than two of the following nationally recognized statistical rating organizations: Moody's, Standard & Poor's or Fitch. Purchases of this category shall not City of Santa Ana - Annual July 1, 2019 - Statement of Investment Policy 555 11 9 June 30, 2020 exceed five years to maturity. There is no percentage limit in this category. K. Medium Term Corporate Notes (MTN) defined as all corporate and depository operating within the United States. Notes eligible for investment shall be rated in a rating category of "A" or its equivalent or better by a nationally recognized rating service. Purchases in this category shall not exceed five (5) years to maturity or thirty percent (30%) of the cost value of the investment portfolio. Purchases in a single issuer in this category shall not exceed five percent (5%) of the cost value of the investment portfolio. L. Shares of beneficial interest otherwise known as money market shares issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Comoanv Act of 1940. The company shall have met either of the following criteria: 1. Attain the highest ranking or the highest letter and numerical rating provided by not less than two NRSROs, and 2. Retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five (5) years' experience investing in the securities and obligations authorized by subsection (a) to (k), inclusive, and subdivisions (m) to (o), inclusive, of Section 53601 of the Government Code and with assets under management in excess of five -hundred, million dollars ($500,000,000). The purchase price of shares of beneficial interest, (mutual funds) purchased pursuant to this subdivision shall not include any commission that these companies may charge. Investments in this category shall be restricted to money market mutual funds that seek to maintain a Net Asset Value of $1. Money market mutual funds provide daily liquidity; therefore, there is no final stated maturity for this investment category. Investments in mutual funds shall be restricted to funds that have the highest ranking or the highest letter and numerical rating provided by not less than two of the following nationally recognized statistical rating organizations: Moody's, Standard & Poors or Fitch. Purchases in this category shall not exceed 20% of the book value of the investment portfolio. Purchases in a single mutual fund shall not exceed 10% of the book value of the Portfolio. City of Santa Ana - Annual July 1, 2019 - Statement of Investment Policy 5 � 0 June 30, 2020 8.3 Suitability Of Investments Suitability, not simply return, is the standard for selecting investments for the portfolio. The Executive Director for FMSA, and all other authorized investment officials and supporting staff shall review the following when selecting or recommending investments for the City: • Sufficient liquidity to meet current obligations • Appropriate level of market risk • Diversified portfolio • Legal investments • Market rate of return The Executive Director for FMSA and his/her designees are not required to invest in all the investment options authorized in this Statement of Investment Policy. Selection will be based on cash flow characteristics, exposure to market risk, rate of return, the technical ability of the staff responsible for administering the program, and the availability of time and tools for staff to engage in conservative, but effective, management of the City's investment portfolio. 9.0 PROHIBITED INVESTMENTS AND INVESTMENT PRACTICES 9.1 Ineligible Investments - State Law Certain investments, however, are prohibited by California Government Code Section 53601.6. Accordingly, the City shall not invest in any inverse floaters, range notes, or mortgage derived, interest -only strips. In addition, the City shall not invest any funds in any security that could result in zero interest accrual if held to maturity. However, prohibited securities that were purchased and are currently held in the City's portfolio, as of the date of this policy adoption, which were previously allowed under the California Government Code, yet are now prohibited due to changes in the Code may be held until their maturity dates. 9.2 Disallowed Investments - Higher Perceived Risk Besides investments prohibited by statute, this policy disallows investments in the following due to a higher perceived risk: • Asset -backed securities (ABS) — securities supported by pools of installment loans or leases or by pools of revolving lines of credit; Derivatives — financial instruments which have a principal and/or interest payment subject to uncertainty as to timing and/or amount including financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or financial contracts based upon notional amounts whose value is City of Santa Ana - Annual 1July 1, 2019 - Statement of Investment Policy �� June 30, 2020 derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities); • Investment agreements — contracts regarding funds deposited by an investor often separated into those offered by banks and those offered by insurance companies commonly known as Guaranteed Investment Contracts (GICs) or Guaranteed Investment Agreements (GIAs); • Mortgage -backed securities — securities created when a mortgage or purchaser of residential real estate mortgages creates a pool of mortgages and markets undivided interests or participation in the pool, including principal only strips; • Reverse Repurchase agreements — agreements involving the borrowing of cash from a financial institution for the purchase of securities in which a financial asset is instead pledged as a collateral for a loan in which the roles of borrower and lender are reversed. • Securities lending agreements — agreements allowing local agencies to earn incremental income on their investment portfolio by loaning securities in their portfolio to financial services companies for a limited time; 9.3 Prohibited Investment Practices Assets of the City shall not be invested pursuant to the following investment practices: Trading of securities strictly for speculation or solely for the realization of short-term trading gains. A contract providing for the compensation of an agent or fiduciary solely based upon the performance of the invested assets. If a fiduciary or other third party with custody of public investment transaction records of the City fails to produce records within a reasonable time, when requested by the City, the City shall make no new investments with or through the fiduciary or third party and shall not renew maturing investments with or through the fiduciary or third party. 10.0 INVESTMENT POOLS/MUTUAL FUNDS The Executive Director for FMSA or his/her designee shall be required to investigate all local government investment pools and money market mutual funds, other than the state Local Agency Investment Fund (LAIF), prior to investing and perform at least a quarterly review thereafter while the City is invested in the pool or the money market fund. City of Santa Ana - Annual July 1, 2019 - Statement of Investment Policy 5W2 June 30, 2020 The City currently authorizes pooled investment fund deposits only with LAW which is authorized under provisions in Section 16429.1 of the California Government Code as an allowable investment for local agencies even though some of the individual investments of the pool are not allowed as a direct investment by a local agency such as the City of Santa Ana. Government sponsored investment pools (Local Agency Investment Fund (LAIF), County Pools, Joint Powers Authority Pools, and the State Treasury Voluntary Investment Program Fund), are sources for short-term cash management. Before seeking City Council approval for participation in one or more additional investment pools/money market mutual funds, the Executive Director for FMSA or his/her designees will conduct a thorough investigation the prospective pool prior to recommending City investment. Before recommending investing in a prospective pool, the following issues must be reviewed: A. The pool must meet the requirements of state statue. B. The pool must provide a written statement of policy and objectives. C. A questionnaire developed by Treasury Investment staff and approved by the Treasury and Customer Services Manager or Assistant Director of Finance shall address the following general topics: i. A description of eligible investment securities, and a written statement of investment policy and objectives. ii. A description of interest calculations and how it is distributed, and how gains and losses are treated. iii. A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited. iv. A description of who may invest in the program, how often, what size minimum and maximum deposit and withdrawal are allowed. v. A schedule for receiving statements and portfolio listings. vi. A description of how reserves, retained earnings, etc. are utilized by the pool. vii. A model of the fee schedule, and when and how it is assessed. viii. A description of eligibility and/or acceptance of bond proceeds. ix. The pool must contain only the types of investment allowed by California Code. Upon approval for participation in one or more additional investment pools the Treasury investment staff shall thereafter on a regular and continuing basis City of Santa Ana - Annual ggJuly 1, 2019 - Statement of Investment Policy tG 1t June 30, 2020 investigate and reconfirm the pool's compliance with items listed above and shall monitor the pool's performance reports. 11.0 COLLATERALIZATION/SECURITY FOR DEPOSIT OF PUBLIC FUNDS Money must be deposited in state or national banks, state or federal savings associations or state or federal credit unions in the State of California. It may be in inactive deposits, active deposits or interest -bearing active deposits. The deposits cannot exceed the amount of the bank's or savings and loan's paid up capital and surplus. The bank or savings and loan must secure the active and inactive deposits with eligible securities having a market value of one -hundred, ten percent (110%) of the total amount of the deposits. State law also allows as an eligible security, first trust deeds having a value of one -hundred, fifty percent (150%) of the total amount of the deposits. A third class of collateral is letters of credit drawn on the Federal Home Loan Bank (FHLB). The Treasurer may waive, at his discretion, security for that portion of a deposit which is insured pursuant to federal law. Currently, the first two -hundred, fifty -thousand dollars ($250,000) of a deposit is federally insured. It is to the City's advantage to waive this collateral requirement for the first $250,000 because we receive a higher interest rate. 12.0 SAFEKEEPING AND CUSTODY 12.1 Perfected Interest and Delivery versus Payment In accordance with California Government Code Section 53601, to protect against potential losses caused by collapse of individual securities dealers, all securities owned by the City except securities used as collateral for repurchase agreements, shall be kept in safekeeping with "perfected interest" by the City's custodial bank or a third party bank trust department, acting as agent for the City under the terms of a custody agreement executed by the bank and by the City. Perfected interest refers to establishment of a superior ownership right in and legal control over the securities assets held by the bank custodian on the City's behalf and is intended to protect the City from the custodial bank's own creditors in the event of a bank default and filing for bankruptcy. All securities, excepting investments which are not deliverable (such as LAIF, direct time certificates of deposit, and money market mutual funds), will be received and delivered using standard "delivery versus payment" Delivery versus payment refers to delivery of securities with an exchange of money for the securities at the time of delivery, rather than delivery of securities with an exchange of a signed receipt for the securities. City of Santa Ana - Annual July 1, 2019 - Statement of Investment Policy 5MN June 30, 2020 13.0 DIVERSIFICATION The purpose of diversification is to reduce overall portfolio risk while attaining market rates of return and to enable the City to meet all anticipated cash requirements. The investment portfolio shall consist of various types of securities approved by state statute and this Statement of Investments Policy. Investments shall vary in issuers, asset classes, industries and maturities to meet City's financial obligations. Diversifying the investment portfolio will help mitigate the loss of funds as a result of failure of any one issuer. Investments shall further be diversified between structures and imbedded options within the security. The investments shall be diversified by: • Limiting investments to avoid over -concentration in securities of a specific issuer (excluding treasury bills). • Limiting investment in securities that have higher credit risks. • Limiting certificates of deposit to the maximum federally insured amount. • Investing in securities with varying maturities. • Investing a minimum percentage of the total portfolio as established by the FMSA Investment Advisory Committee in highly marketable short-term treasuries, checking accounts with interest, government pooled account, or a combination of all three (See Section 4.1 (A)(iv)). 14.0 MAXIMUM MATURITIES 14.1 Maximum Maturities To the extent possible, the City of Santa Ana will attempt to match its investments with anticipated cash flow requirements and thus maturities shall coincide as nearly as possible with the anticipated need. The maximum durations for authorized investments pursuant to section 8.2 subsections (A) through (F) are as follows: • United States Treasury Bills. Notes, and Bonds — five (5) years maximum maturity • Obligations issued by a Federal Agency or a United States Government Sponsored Enterprise — five (5) years maximum maturity • Supranational Obligations - five (5) years maximum maturity • Bills of Exchange/Banker's acceptances - one hundred eighty (180) days maximum maturity. • Commercial Paper- two hundred seventy 270 days maximum maturity • Repurchase Agreements —one (1) year maximum maturity City of Santa Ana - Annual July 1, 2019 - Statement of Investment Policy 5 '2 5 June 30, 2020 • Negotiable Certificates of Deposit- five (5) years maximum maturity • Local Agency Investment Fund (LAIF) State Pool - no final stated maturity • City of Santa Ana Bonds -five (5) years maximum maturity • Other State of California Local Agency Bonds -five (5) years maximum maturity • Medium Term Corporate Notes - five (5) years maximum maturity • Shares of Beneficial InteresUMoney Market Shares - no final stated maturity (See also subsection 8.2 generally for additional information on City authorized concentration limits and quality requirements.) 14.2 Average Maturity In accordance with the goal of minimizing interest rate risk (see subsection 4.1(b)) the City of Santa Ana will to the extent possible attempt to aim for an average investment portfolio maturity of 3 years. 15.0 INTERNAL CONTROLS The Executive Director for FMSA is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the entity are protected from loss, theft or misuse. The Executive Director for FMSA has developed a system of internal investment controls and a segregation of responsibilities of investment functions in order to assure an adequate system of internal control over the investment function. No investment personnel may engage in an investment transaction except as provided for under the terms of this policy and the procedure established by the Executive Director for FMSA. Internal control procedures address: • Control of collusion • Control of fraud • Control of misrepresentation by third parties Control of employee error • Separation of transaction authority from accounting and record keeping • Custodial safekeeping • Delivery versus payment • Clear delegation of authority • Conformation of transactions for investment and wire transfers • Written procedures for placing of investment transactions • FMSA Investment Advisory Committee City of Santa Ana - Annual July 1, 2019 - Statement of Investment Policy Ml l-h June 30, 2020 In addition, cash balances are reconciled daily by non -investment employees and reconfirmed by the City's accounting staff. Accounting staff also verifies investment activities and holdings on a regular basis as part of the FMSA Investment Advisory Committee. The Executive Director for FMSA, at his/her discretion, shall establish a process for annual independent reviews by an external auditor to the extent contemplated by generally accepted auditing standards, during the course of the City's annual audit. 16.0 PERFORMANCE STANDARDS The investment portfolio shall be managed to attain a market -average rate of return throughout budgetary and economic cycles, taking into account the City's investment risk constraints, cash flow, and policy towards the pre -payment of specific City debts or contribution servicing obligations (when finically advantageous to the City). Investment return becomes a consideration only after the basic requirements of investment safety and liquidity have been met. Because the investment portfolio is designed to operate on primarily a 'hold -to -maturity' premise, and because of the safety, liquidity, and yield priorities, the performance benchmark that will be used by the Executive Director for FMSA to determine whether market yields are being achieved shall be the average of the monthly LAW rate and the 12-month rolling average 2-Year Constant Maturity Treasury (CMT) rate. However, since return on investment is the least important objective of the Investment Portfolio, the benchmark will be used only as a reference tool. The reporting of a benchmark does not imply that the City Treasurer will add additional risk to the Investment Portfolio in order to attain or exceed the benchmark. 17.0 REPORTING Government Code Section 53646(b)(1) previously mandated that annual investment policies and quarterly reports be rendered to the legislative body (for the City of Santa Ana - the City Council). AB 2853 amended Government Code Section 53646 making these requirements permissive rather than mandatory. Although the Annual Statement of Investment Policy and Quarterly Reports to City Council are no longer required, we believe it to be both prudent and in keeping with the spirit of the City's Sunshine Policy that these documents continue to provided. The Executive Director for FMSA shall therefore continue to render to the City Council an annual Statement of Investment Policy and regular reports to the City Manager and the City Council containing detailed information on all securities, investments, and moneys of the City. The reports will be informally submitted to the City Manager and City Council on a monthly basis and will be rendered formally to the City Council on a quarterly basis as part of a scheduled open City Council Meeting agenda within thirty (30) days following the end of each quarter. The report will contain the following information on the funds that are subject to this investment policy: 1) Type of investment and name of issuer; 2) Date of maturity; City of Santa Ana . Annual July 1, 2019 - Statement of Investment Policy %� 1� 7 June 30, 2020 3) Par amount; 4) Dollar amount invested in all securities, and investments and monies held by the City (amortized cost or book value); 5) Weighted average maturity of the investments; 6) Current market value as of the date of report of all funds held by the City and under the management of any outside party that is not also a local agency or LAIF and the source of the valuation; 7) Source of the market value information; 8) A description of the any funds, investments or programs, including loans, under the management of contracted parties such as LAIF, investment. pools, outside money managers, and securities lending agents); 9) A statement of compliance with the investment policy or an explanation for non-compliance; and 10) A statement of the local agency's ability to meet its pool's expenditure requirements for the next six months, as well as an explanation of why sufficient money will not be available if that is the case. 18.0 POLICY CONSIDERATIONS 18.1 Exemptions Any investment currently held that does not meet the guidelines of this policy shall be exempted from the requirements of this policy as long as it was in compliance with State of California law and the City's investment policy in effect at the time of purchase. At maturity or liquidation, such monies shall be reinvested only as provided by this policy. 18.2 Stabilization Fund Except for cash in certain restricted and special funds, the consolidation of cash balances from all funds and the maintenance of portfolio liquidity (both static and dynamic) as provided for in this policy taken together with the monthly affirmation to the City Manager and City Councilmembers of the City's ability to meet its pool's expenditure requirements for the next six months shall be deemed to functionally meet and exceed the requirements of Article VI., Sec. 610, of the City of Santa Ana Charter as relates to the maintenance of a stabilization fund. 18.3 Amendments In the event this policy is amended prior to the end of its twelve month fiscal year term the amended Statement of Investment Policy shall be resubmitted to City Council for review and adoption by City Council Resolution. City of Santa Ana - Annual pp�a July 1, 2019 - Statement of Investment Policy 5gl§2 Q June 30, 2020 18.4 Approval This Statement of Investment Policy is approved by City Council on this 181h day of June, 2019 pursuant to City Council Resolution # 2019- 19.0 POLICY REVIEW, CERTIFICATION, AND ADOPTION 19.1 Policy Review This Statement of Investment Policy shall be reviewed at least annually to ensure its consistency with the overall objectives of preservation of PRINCIPAL, LIQUIDITY, AND YIELD, and to: 1) reflect changes in applicable California state codes, 2) maintain its relevance to current financial and economic trends, and 3) meet the needs of the City of Santa Ana. 19.2 Policy Review Annually, this Statement of Investment Policy will be submitted to the Association of Public Treasurers of the United States and Canada and the California Municipal Treasurers Association for review and certification. 19.3 Adoption The Executive Director for FMSA shall annually render this Statement of Investment Policy to the City Council and City Manager. The City Council shall annually review and adopt this Statement of Investment Policy by resolution at a public meeting. 20.0 APPENDICIES & GLOSSARIES 20.1 California Investment Code Abstracts - Appendix I. 20.2 California Local Agency Investment Guidelines -Appendix II. 20.3 Glossaries of Terms Appendix III. (Glossary of Referenced Terms - City of Santa Ana Investment Policy & Related California Codes) Appendix IV. (Glossary of Additional Common Public Local Agency Investment Terms) Appendix V. (Broker / Dealer Questionnaire And Certification Form) City of Santa Ana -Annual July 1, 2019 - Statement of Investment Policy 2� June 30, 2020 Submitted to the Santa Ana City Council for approval, this 18th day of June. 2019. Kathryn Downs, CPA Executive Director & City Treasurer Finance & Management Services Agency RP:WH City of Santa - Annual July 1, 2019 - Statement of Investment Policy 5Wto June 30, 2020 APPENDICIES TABLE OF APPENDICIES...................................................................................................................... Page 23 APPENDIX I. CALIFORNIA INVESTMENT CODE ABSTRACTS CORPORATIONS CODE SECTION 25004............ FINANCIAL CODE SECTION 5102......................... GOVERNMENT CODE SECTION 16429.1............. GOVERNMENT CODE SECTION 53630................ GOVERNMENT CODE SECTION 53635................ GOVERNMENT CODE SECTION 53601................ GOVERNMENT CODE SECTION 53601.1............. GOVERNMENT CODE SECTION 53601.6............. GOVERNMENT CODE SECTION 53638................ GOVERNMENT CODE SECTION 53646................ .............................................................. Page 24 .............................................................. Page 25 .............................................................. Page 26 .............................................................. Page 28 .............................................................. Page 29 .............................................................. Page 30 .............................................................. Page 34 .............................................................. Page 35 .............................................................. Page 35 .............................................................. Page 35 APPENDIX II. LOCAL AGENCY INVESTMENT GUIDELINES TABLES ALLOWABLE INVESTMENT INSTRUMENTS PER STATE GOVERNMENT CODE (AS OF JANUARY 1, 2019) APPLICABLE TOO ALL LOCAL AGENCIES (FIGURE 1) - LOCAL AGENCY INVESTMENT GUIDELINES.......................................................... Page i ALLOWABLE INVESTMENT INSTRUMENTS TABLE OF NOTES FOR FIGURE 1 - LOCAL AGENCY INVESTMENT GUIDELINES..............................................................................................................Pages ii-iii APPENDIX III. GLOSSARY OF REFERENCED TERMS - CITY OF SANTA ANA INVESTMENT POLICY AND RELATED CALIFORNIA CODES.............................................................Pages A-H APPENDIX N. GLOSSARY OF ADDITIONAL COMMON PUBLIC LOCAL AGENCY INVESTMENT TERMS ............ Pages I-L APPENDIX V. BROKER / DEALER QUESTIONNAIRE AND CERTIFICATION FORM ........................................... Pages M-O City of Santa Ana - Annual July 1, 2019 - Statement of Investment Policy -?t June 30, 2020 CORPORATIONS CODE - CORP TITLE 4. SECURITIES [25000 - 315161 ( Title 4 added by Stats. 1949, Ch. 384. ) DIVISION 1. CORPORATE SECURITIES LAW OF 1968 [25000 - 257071 ( Division 1 repealed and added by Stats. 1968, Ch. 88. ) PART 1. DEFINITIONS [25000-250231 ( Part 1 added by Stats. 1968, Ch. 88. ) CORPORATIONS CODE SECTION 25004. (a) "Broker -dealer' means any person engaged in the business of effecting transactions in securities in this state for the account of others or for his own account. "Broker -dealer" also includes a person engaged in the regular business of issuing or guaranteeing options with regard to securities not of his own issue. "Broker- dealer"does not include any of the following: (1) Any other issuer. (2) An agent, when an employee of a broker -dealer or issuer. (3) A bank, trust company, or savings and loan association. (4) Any person insofar as he buys or sells securities for his own account, either individually or in some fiduciary capacity, but not as part of a regular business. (5) A person who has no place of business in this state if he effects transactions in this state exclusively with (A) the issuers of the securities involved in the transactions or (B) other broker -dealers. (6) A broker licensed by the Real Estate Commissioner of this state when engaged in transactions in securities exempted by subdivision (f) or (p) of Section 25100 or in securities the issuance of which is subject to authorization by the Real Estate Commissioner of this state or in transactions exempted by subdivision (e) of Section 25102. (7) An exchange certified by the Commissioner of Corporations pursuant to this section when it is issuing or guaranteeing options. The commissioner may by order certify an exchange under this section upon such conditions as he by rule or order deems appropriate, and upon notice and opportunity to be heard he may suspend or revoke such certification, if he finds such certification, suspension, or revocation to be in the public interest and necessary and appropriate for the protection of investors. (b) For purposes of this section, an agent is an employee of a broker -dealer under paragraph (2) of subdivision (a) when the agent is employed by or associated with the broker -dealer under all of the following conditions: (1) The agent is subject to the supervision and control of the broker -dealer. (2) The agent performs under the name, authority, and marketing policies of the broker -dealer. (3) The agent discloses to investors the identity of the broker -dealer. (4) The agent is reported pursuant to subdivision (c) of Section 25210 and the rules adopted thereunder. (Amended by Stats. 2004, Ch. 461, Sec. 1. Effective January 1, 2005.) City of Santa Ana - Annual July 11 2019 - Statement of Investment Policy 5tiSt2 June 30, 2020 FINANCIAL CODE - FIN DIVISION 2. SAVINGS ASSOCIATION LAW [5000-100091 ( Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2. ) CHAPTER 1. Short Title, General Definitions, and General Provisions [5000 - 5330] ( Chapter 1 added by Stats. 1983, Ch. 1091, Sec. 2. ) ARTICLE 2. General Definitions [5100 - 5124] (Article 2 added by Stats. 1983, Ch. 1091, Sec. 2. ) FINANCIAL CODE SECTION 5102. (a) "Association" or "savings association" means a mutual or stock savings association, savings and loan association or savings bank subject to the provisions of this division, but excluding a federal association. (b) "Federal association" means a savings and loan association or federal savings bank that is chartered by the Office of Thrift Supervision under Section 5 of the Home Owners' Loan Act of 1933 (12 U.S.C. Sec. 1464), as amended. (Amended by Stats. 1990, Ch. 1118, Sec. 8.) City of Santa Ana - Annual July 1, 2019 - Statement of Investment Policy 2 June 30, 2020 GOVERNMENT CODE - GOV TITLE 2. GOVERNMENT OF THE STATE OF CALIFORNIA [8000 - 229801 ( Title 2 enacted by Slats. 1943, Ch. 134. ) DIVISION 4. FISCAL AFFAIRS [116100-17700] ( Division 4 added by Stats. 1945, Ch. 119. ) PART 2. STATE FUNDS 116300-16649.95] ( Part 2 added by Stats. 1945, Ch. 120. ) CHAPTER 2. Special Funds [16346-16429.4] ( Chapter 2 added by Slats. 1945, Ch. 120. ) ARTICLE 11. Local Agency Investment Fund [16429.1-16429.4] (Article 11 added by Stats. 1976, Ch. 730. ) GOVERNMENT CODE SECTION 16429.1. (a) There is in trust in the custody of the Treasurer the Local Agency Investment Fund, which fund is hereby created. The Controller shall maintain a separate account for each governmental unit having deposits in this fund. (b) Notwithstanding any other law, a local governmental official, with the consent of the governing body of that agency, having money in its treasury not required for immediate needs, may remit the money to the Treasurer for deposit in the Local Agency Investment Fund for the purpose of investment. (c) Notwithstanding any other law, an officer of any nonprofit corporation whose membership is confined to public agencies or public officials, or an officer of a qualified quasi -governmental agency, with the consent of the governing body of that agency, having money in its treasury not required for immediate needs, may remit the money to the Treasurer for deposit in the Local Agency Investment Fund for the purpose of investment. (d) Notwithstanding any other law or provision of this section, a local agency, with the approval of its governing body, may deposit in the Local Agency Investment Fund proceeds of the issuance of bonds, notes, certificates of participation, or other evidences of indebtedness of the agency pending expenditure of the proceeds for the authorized purpose of their issuance. In connection with these deposits of proceeds, the Local Agency Investment Fund is authorized to receive and disburse moneys, and to provide information, directly with or to an authorized officer of a trustee or fiscal agent engaged by the local agency, the Local Agency Investment Fund is authorized to hold investments in the name and for the account of that trustee or fiscal agent, and the Controller shall maintain a separate account for each deposit of proceeds. (e) The local governmental unit, the nonprofit corporation, or the quasi -governmental agency has the exclusive determination of the length of time its money will be on deposit with the Treasurer. (f) The trustee or fiscal agent of the local governmental unit has the exclusive determination of the length of time proceeds from the issuance of bonds will be on deposit with the Treasurer. (g) The Local Investment Advisory Board shall determine those quasi -governmental agencies which qualify to participate in the Local Agency Investment Fund. (h) The Treasurer may refuse to accept deposits into the fund if, in the judgment of the Treasurer, the deposit would adversely affect the state's portfolio. City of Santa Ana - Annual July 1, 2019 - Statement of Investment Policy 5t19 34 June 30, 2020 (1) The Treasurer may invest the money of the fund in securities prescribed in Section 16430. The Treasurer may elect to have the money of the fund invested through the Surplus Money Investment Fund as provided in Article 4 (commencing with Section 16470) of Chapter 3. 0) Money in the fund shall be invested to achieve the objective of the fund which is to realize the maximum return consistent with safe and prudent treasury management. (k) All instruments of title of all investments of the fund shall remain in the Treasurers vault or be held in safekeeping under control of the Treasurer in any federal reserve bank, or any branch thereof, or the Federal Home Loan Bank of San Francisco, with any trust company, or the trust department of any state or national bank. (1) Immediately at the conclusion of each calendar quarter, all interest earned and other increment derived from investments shall be distributed by the Controller to the contributing governmental units or trustees or fiscal agents, nonprofit corporations, and quasi -governmental agencies in amounts directly proportionate to the respective amounts deposited in the Local Agency Investment Fund and the length of time the amounts remained therein. An amount equal to the reasonable costs incurred in carrying out the provisions of this section, not to exceed a maximum of 5 percent of the earnings of this fund and not to exceed the amount appropriated in the annual Budget Act for this function, shall be deducted from the earnings prior to distribution. However, if the 13-week Daily Treasury Bill Rate, as published by the United States Department of the Treasury on the last day of the state's fiscal year is below 1 percent, then the above -noted reasonable costs shall not exceed a maximum of 8 percent of the earnings of this fund for the subsequent fiscal year, shall not exceed the amount appropriated in the annual Budget Act for this function, and shall be deducted from the earnings prior to distribution. The amount of the deduction shall be credited as reimbursements to the state agencies, including the Treasurer, the Controller, and the Department of Finance, having incurred costs in carrying out the provisions of this section. (m) The Treasurer shall prepare for distribution a monthly report of investments made during the preceding month. (n) As used in this section, "local agency," "local governmental unit," and "local governmental official" includes a campus or other unit and an official, respectively, of the California State University who deposits moneys in funds described in Sections 89721, 89722, and 89725 of the Education Code. (Amended by Stats. 2014, Ch. 28, Sec. 39. Effective June 20, 2014.) City of Santa Ana - Annual July 1, 2019 - Statement of Investment Policy %� 2Z 5 June 30, 2020 GOVERNMENT CODE - GOV TITLE 5. LOCAL AGENCIES [50001 - 575501 ( Title 5 added by Stats. 1949, Ch. 81. ) DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 558211 ( Division 2 added by Stats. 1949, Ch. 81. ) PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.71 ( Part 1 added by Stats. 1949, Ch. 81. ) CHAPTER 4. Financial Affairs [53600 - 53997] ( Chapter 4 added by Stats. 1949, Ch. 81. ) ARTICLE 2. Deposit of Funds [53630 - 53686] (Article 2 added by Stats. 1949, Ch. 81. ) GOVERNMENT CODE SECTION 53630. As used in this article: (a) "Local agency" means county, city, city and county, including a chartered city or county, a community college district, or other public agency or corporation in this state. (b) "Treasurer" means treasurer of the local agency. (c) "Depository' means a state or national bank, savings association or federal association, a state or federal credit union, or a federally insured industrial loan company, in this state in which the moneys of a local agency are deposited. (d) "Agent of depository" means a trust company or trust department of a state or national bank located in this state, including the trust department of a depository where authorized, and the Federal Home Loan Bank of San Francisco, which is authorized to act as an agent of depository for the purposes of this article pursuant to Section 53657. (e) "Security" means any of the eligible securities or obligations listed in Section 53651. (f) "Pooled securities" means eligible securities held by an agent of depository for a depository and securing deposits of one or more local agencies. (g) "Administrator" means the Administrator of Local Agency Security of the State of California (h) "Savings association or federal association" means a savings association, savings and loan association, or savings bank as defined by Section 5102 of the Financial Code. (i) "Federally insured industrial loan company' means an industrial loan company licensed under Division 7 (commencing with Section 18000) of the Financial Code, the investment certificates of which are insured by the Federal Deposit Insurance Corporation. Q) "Corporation" includes a limited liability company. (Amended by Stats. 2004, Ch. 118, Sec. 19.7. Effective January 1, 2005.) City of Santa Ana - Annual p� July 1, 2019 - Statement of Investment Policy 5 G� _t6 June 30, 2020 GOVERNMENT CODE SECTION 53635. (a) This section shall apply to a local agency that is a county, a city and county, or other local agency that pools money in deposits or investments with other local agencies, including local agencies that have the same governing body. However, Section 53601 shall apply to all local agencies that pool money in deposits or investments exclusively with local agencies that have the same governing body. This section shall be interpreted in a manner that recognizes the distinct characteristics of investment pools and the distinct administrative burdens on managing and investing funds on a pooled basis pursuant to Article 6 (commencing with Section 27130) of Chapter 5 of Division 2 of Title 3. A local agency that is a county, a city and county, or other local agency that pools money in deposits or investments with other agencies may invest in commercial paper pursuant to subdivision (h) of Section 53601, except that the local agency shall be subject to the following concentration limits: (1) No more than 40 percent of the local agency's money may be invested in eligible commercial paper. (2) No more than 10 percent of the total assets of the investments held by a local agency may be invested in any one issuer's commercial paper. (b) Notwithstanding Section 53601, the City of Los Angeles shall be subject to the concentration limits of this section for counties and for cities and counties with regard to the investment of money in eligible commercial paper. (Amended by Stats. 2008, Ch. 709, Sec. 10.7. Effective January 1, 2009.) City of Santa Ana - Annual July 1, 2019 - Statement of Investment Policy 5MV37 June 30, 2020 GOVERNMENT CODE SECTION 53601. This section shall apply to a local agency that is a city, a district, or other local agency that does not pool money in deposits or investments with other local agencies, other than local agencies that have the same governing body. However, Section 53635 shall apply to all local agencies that pool money in deposits or investments with other local agencies that have separate governing bodies. The legislative body of a local agency having moneys in a sinking fund or moneys in its treasury not required for the immediate needs of the local agency may invest any portion of the moneys that it deems wise or expedient in those investments set forth below. A local agency purchasing or obtaining any securities prescribed in this section, in a negotiable, bearer, registered, or nonregistered format, shall require delivery of the securities to the local agency, including those purchased for the agency by financial advisers, consultants, or managers using the agency's funds, by book entry, physical delivery, or by third -party custodial agreement. The transfer of securities to the counterparty bank's customer book entry account may be used for book entry delivery. For purposes of this section, "counterparty' means the other party to the transaction. A counterparty bank's trust department or separate safekeeping department may be used for the physical delivery of the security if the security is held in the name of the local agency. Where this section specifies a percentage limitation for a particular category of investment, that percentage is applicable only at the date of purchase. Where this section does not specify a limitation on the term or remaining maturity at the time of the investment, no investment shall be made in any security, other than a security underlying a repurchase or reverse repurchase agreement or securities lending agreement authorized by this section, that at the time of the investment has a term remaining to maturity in excess of five years, unless the legislative body has granted express authority to make that investment either specifically or as a part of an investment program approved by the legislative body no less than three months prior to the investment: (a) Bonds issued by the local agency, including bonds payable solely out of the revenues from a revenue - producing property owned, controlled, or operated by the local agency or by a department, board, agency, or authority of the local agency. (b) United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. (c) Registered state warrants or treasury notes or bonds of this state, including bonds payable solely out of the revenues from a revenue -producing property owned, controlled, or operated by the state or by a department, board, agency, or authority of the state. (d) Registered treasury notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue -producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California. (a) Bonds, notes, warrants, or other evidences of indebtedness of a local agency within this state, including bonds payable solely out of the revenues from a revenue -producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency. (f) Federal agency or United States government -sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government -sponsored enterprises. (g) Bankers' acceptances otherwise known as bills of exchange or time drafts that are drawn on and accepted by a commercial bank. Purchases of bankers' acceptances shall not exceed 180 days' maturity or 40 percent of the agency's moneys that may be invested pursuant to this section. However, no more than 30 percent of the agency's moneys may be invested in the bankers' acceptances of any one commercial bank pursuant to this section. City of Santa Ana - Annual July 1, 2019 - Statement of Investment Policy 59W3 Q June 30, 2020 This subdivision does not preclude a municipal utility district from investing moneys in its treasury in a manner authorized by the Municipal Utility District Act (Division 6 (commencing with Section 11501) of the Public Utilities Code). (h) Commercial paper of "prime" quality of the highest ranking or of the highest letter and number rating as provided for by a nationally recognized statistical rating organization (NRSRO). The entity that issues the commercial paper shall meet all of the following conditions in either paragraph (1) or (2): (1) The entity meets the following criteria: (A) Is organized and operating in the United States as a general corporation. (B) Has total assets in excess of five hundred million dollars ($500,000,000). (C) Has debt other than commercial paper, if any, that is rated "A" or higher by an NRSRO. (2) The entity meets the following criteria: (A) Is organized within the United States as a special purpose corporation, trust, or limited liability company. (B) Has program wide credit enhancements including, but not limited to, overcollateralization, letters of credit, or a surety bond. (C) Has commercial paper that is rated "A-1" or higher, or the equivalent, by an NRSRO. Eligible commercial paper shall have a maximum maturity of 270 days or less. Local agencies, other than counties or a city and county, may invest no more than 25 percent of their moneys in eligible commercial paper. Local agencies, other than counties or a city and county, may purchase no more than 10 percent of the outstanding commercial paper of any single issuer. Counties or a city and county may invest in commercial paper pursuant to the concentration limits in subdivision (a) of Section 53635. (i) Negotiable certificates of deposit issued by a nationally or state -chartered bank, a savings association or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union, or by a federally licensed or state -licensed branch of a foreign bank. Purchases of negotiable certificates of deposit shall not exceed 30 percent of the agency's moneys that may be invested pursuant to this section. For purposes of this section, negotiable certificates of deposit do not come within Article 2 (commencing with Section 53630), except that the amount so invested shall be subject to the limitations of Section 53638. The legislative body of a local agency and the treasurer or other official of the local agency having legal custody of the moneys are prohibited from investing local agency funds, or funds in the custody of the local agency, in negotiable certificates of deposit issued by a state or federal credit union if a member of the legislative body of the local agency, or a person with investment decision -making authority in the administrative office manager's office, budget office, auditor -controller's office, or treasurer's office of the local agency also serves on the board of directors, or any committee appointed by the board of directors, or the credit committee or the supervisory committee of the state or federal credit union issuing the negotiable certificates of deposit. 0) (1) Investments in repurchase agreements or reverse repurchase agreements or securities lending agreements of securities authorized by this section, as long as the agreements are subject to this subdivision, including the delivery requirements specified in this section. (2) Investments in repurchase agreements may be made, on an investment authorized in this section, when the term of the agreement does not exceed one year. The market value of securities that underlie a repurchase agreement shall be valued at 102 percent or greater of the funds borrowed against those securities and the value shall be adjusted no less than quarterly. Since the market value of the underlying securities is subject to daily market fluctuations, the investments in repurchase agreements shall be in compliance if the value of the underlying securities is brought back up to 102 percent no later than the next business day. City of Santa Ana - Annual July 1, 2019 - Statement of Investment Policy 5 55 339 June 30, 2020 (3) Reverse repurchase agreements or securities lending agreements may be utilized only when all of the following conditions are met: (A) The security to be sold using a reverse repurchase agreement or securities lending agreement has been owned and fully paid for by the local agency for a minimum of 30 days prior to sale. (B) The total of all reverse repurchase agreements and securities lending agreements on investments owned by the local agency does not exceed 20 percent of the base value of the portfolio. (C) The agreement does not exceed a term of 92 days, unless the agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security. (D) Funds obtained or funds within the pool of an equivalent amount to that obtained from selling a security to a counterparty using a reverse repurchase agreement or securities lending agreement shall not be used to purchase another security with a maturity longer than 92 days from the initial settlement date of the reverse repurchase agreement or securities lending agreement, unless the reverse repurchase agreement or securities lending agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security. (4) (A) Investments in reverse repurchase agreements, securities lending agreements, or similar investments in which the local agency sells securities prior to purchase with a simultaneous agreement to repurchase the security may be made only upon prior approval of the governing body of the local agency and shall be made only with primary dealers of the Federal Reserve Bank of New York or with a nationally or state -chartered bank that has or has had a significant banking relationship with a local agency. (B) For purposes of this chapter, "significant banking relationship" means any of the following activities of a bank: (i) Involvement in the creation, sale, purchase, or retirement of a local agency's bonds, warrants, notes, or other evidence of indebtedness. (ii) Financing of a local agency's activities. (iii) Acceptance of a local agency's securities or funds as deposits. (5) (A) "Repurchase agreement" means a purchase of securities by the local agency pursuant to an agreement by which the counterparty seller will repurchase the securities on or before a specified date and for a specified amount and the counterparty will deliver the underlying securities to the local agency by book entry, physical delivery, or by third -party custodial agreement. The transfer of underlying securities to the counterparty bank's customer book -entry account may be used for book -entry delivery. (B) "Securities," for purposes of repurchase under this subdivision, means securities of the same issuer, description, issue date, and maturity. (C) "Reverse repurchase agreement" means a sale of securities by the local agency pursuant to an agreement by which the local agency will repurchase the securities on or before a specified date and includes other comparable agreements. (D) "Securities lending agreement" means an agreement under which a local agency agrees to transfer securities to a borrower who, in turn, agrees to provide collateral to the local agency. During the term of the agreement, both the securities and the collateral are held by a third party. At the conclusion of the agreement, the securities are transferred back to the local agency in return for the collateral. (E) For purposes of this section, the base value of the local agency's pool portfolio shall be that dollar amount obtained by totaling all cash balances placed in the pool by all pool participants, excluding any City of Santa Ana - Annual pnuJuly 1, 2019 - Statement of Investment Policy 55B 340 June 30, 2020 amounts obtained through selling securities by way of reverse repurchase agreements, securities lending agreements, or other similar borrowing methods. (F) For purposes of this section, the spread is the difference between the cost of funds obtained using the reverse repurchase agreement and the earnings obtained on the reinvestment of the funds. (k) Medium -term notes, defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Notes eligible for investment under this subdivision shall be rated W or better by an NRSRO. Purchases of medium -term notes shall not include other instruments authorized by this section and shall not exceed 30 percent of the agency's moneys that may be invested pursuant to this section. (1) (1) Shares of beneficial interest issued by diversified management companies that invest in the securities and obligations as authorized by subdivisions (a) to (k), inclusive, and subdivisions (m) to (q), inclusive, and that comply with the investment restrictions of this article and Article 2 (commencing with Section 53630). However, notwithstanding these restrictions, a counterparty to a reverse repurchase agreement or securities lending agreement is not required to be a primary dealer of the Federal Reserve Bank of New York if the company's board of directors finds that the counterparty presents a minimal risk of default, and the value of the securities underlying a repurchase agreement or securities lending agreement may be 100 percent of the sales price if the securities are marked to market daily. (2) Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.). (3) If investment is in shares issued pursuant to paragraph (1), the company shall have met either of the following criteria: (A) Attained the highest ranking or the highest letter and numerical rating provided by not less than two NRSROs. (B) Retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years' experience investing in the securities and obligations authorized by subdivisions (a) to (k), inclusive, and subdivisions (m) to (q), inclusive, and with assets under management in excess of five hundred million dollars ($500,000,000). (4) If investment is in shares issued pursuant to paragraph (2), the company shall have met either of the following criteria: (A) Attained the highest ranking or the highest letter and numerical rating provided by not less than two NRSROs. (B) Retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years' experience managing money market mutual funds with assets under management in excess of five hundred million dollars ($500,000,000). (5) The purchase price of shares of beneficial interest purchased pursuant to this subdivision shall not include commission that the companies may charge and shall not exceed 20 percent of the agency's moneys that may be invested pursuant to this section. However, no more than 10 percent of the agency's funds may be invested in shares of beneficial interest of any one mutual fund pursuant to paragraph (1). (m) Moneys held by a trustee or fiscal agent and pledged to the payment or security of bonds or other indebtedness, or obligations under a lease, installment sale, or other agreement of a local agency, or certificates of participation in those bonds, indebtedness, or lease installment sale, or other agreements, may be invested in accordance with the statutory provisions governing the issuance of those bonds, indebtedness, or lease installment sale, or other agreement, or to the extent not inconsistent therewith or if City of Santa Ana - Annual July 1, 2019 - Statement of Investment Policy %� 341 June 30, 2020 there are no specific statutory provisions, in accordance with the ordinance, resolution, indenture, or agreement of the local agency providing for the issuance. (n) Notes, bonds, or other obligations that are at all times secured by a valid first priority security interest in securities of the types listed by Section 53651 as eligible securities for the purpose of securing local agency deposits having a market value at least equal to that required by Section 53652 for the purpose of securing local agency deposits. The securities serving as collateral shall be placed by delivery or book entry into the custody of a trust company or the trust department of a bank that is not affiliated with the issuer of the secured obligation, and the security interest shall be perfected in accordance with the requirements of the Uniform Commercial Code or federal regulations applicable to the types of securities in which the security interest is granted. (o) A mortgage pass -through security, collateralized mortgage obligation, mortgage -backed or other pay - through bond, equipment lease -backed certificate, consumer receivable pass -through certificate, or consumer receivable -backed bond. Securities eligible for investment under this subdivision shall be rated in a rating category of "AA" or its equivalent or better by an NRSRO and have a maximum remaining maturity of five years or less. Purchase of securities authorized by this subdivision shall not exceed 20 percent of the agency's surplus moneys that may be invested pursuant to this section. (p) Shares of beneficial interest issued by a joint powers authority organized pursuant to Section 6509.7 that invests in the securities and obligations authorized in subdivisions (a) to (q), inclusive. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment adviser that meets all of the following criteria: (1) The adviser is registered or exempt from registration with the Securities and Exchange Commission. (2) The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (q), inclusive. (3) The adviser has assets under management in excess of five hundred million dollars ($500,000,000). (q) United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter -American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments under this subdivision shall be rated "AA" or better by an NRSRO and shall not exceed 30 percent of the agency's moneys that may be invested pursuant to this section. (Amended by Stats. 2014, Ch. 59, Sec. 1. Effective January 1, 2015.) GOVERNMENT CODE SECTION 53601.1. The authority of a local agency to invest funds pursuant to Section 53601 includes, in addition thereto, authority to invest in financial futures or financial option contracts in any of the investment categories enumerated in that section. (Added by Stats. 1983, Ch. 534, Sec. 3.) City of Santa Ana - Annual 34 July 1, 2019 - Statement of Investment Policy 5 9b — A 2 June 30, 2020 GOVERNMENT CODE SECTION 53601.6. (a) A local agency shall not invest any funds pursuant to this article or pursuant to Article 2 (commencing with Section 53630) in inverse floaters, range notes, or mortgage -derived, interest -only strips. (b) A local agency shall not invest any funds pursuant to this article or pursuant to Article 2 (commencing with Section 53630) in any security that could result in zero interest accrual if held to maturity. However, a local agency may hold prohibited instruments until their maturity dates. The limitation in this subdivision shall not apply to local agency investments in shares of beneficial interest issued by diversified management companies registered under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 at seq.) that are authorized for investment pursuant to subdivision (1) of Section 53601. (Amended by Stats. 2009, Ch. 33Z Sec. 68.1. Effective January 1, 2010.) GOVERNMENT CODE SECTION 53638. (a) The deposit shall not exceed the shareholder's equity of any depository bank. For the purposes of this subdivision, shareholders equity shall be determined in accordance with Section 463 of the Financial Code, but shall be deemed to include capital notes and debentures. (b) The deposit shall not exceed the total of the net worth of any depository savings association or federal association, except that deposits not exceeding a total of five hundred thousand dollars ($500,000) may be made to a savings association or federal association without regard to the net worth of that depository, if such deposits are insured or secured as required by law. (c) The deposit to the share accounts of any regularly chartered credit union shall not exceed the total of the unimpaired capital and surplus of the credit union, as defined by rule of the Commissioner of Financial Institutions, except that the deposit to any credit union share account in an amount not exceeding five hundred thousand dollars ($500,000) may be made if the share accounts of that credit union are insured or guaranteed pursuant to Section 14858 of the Financial Code or are secured as required by law. (d) The deposit in investment certificates of a federally insured industrial loan company shall not exceed the total of the unimpaired capital and surplus of the insured industrial loan company. (Amended by Stats. 2015, Ch. 190, Sec. 64. Effective January 1, 2016.) GOVERNMENT CODE SECTION 53646. (a) (1) In the case of county government, the treasurer may annually render to the board of supervisors and any oversight committee a statement of investment policy, which the board shall review and approve at a public meeting. Any change in the policy shall also be reviewed and approved by the board at a public meeting. City of Santa Ana - Annual July 1, 2019 - Statement of Investment Policy 5528 343 June 30, 2020 (2) In the case of any other local agency, the treasurer or chief fiscal officer of the local agency may annually render to the legislative body of that local agency and any oversight committee of that local agency a statement of investment policy, which the legislative body of the local agency shall consider at a public meeting. Any change in the policy shall also be considered by the legislative body of the local agency at a public meeting. (b) (1) The treasurer or chief fiscal officer may render a quarterly report to the chief executive officer, the internal auditor, and the legislative body of the local agency. The quarterly report shall be so submitted within 30 days following the end of the quarter covered by the report. Except as provided in subdivisions (e) and (f), this report shall include the type of investment, issuer, date of maturity, par and dollar amount invested on all securities, investments and moneys held by the local agency, and shall additionally include a description of any of the local agency's funds, investments, or programs, that are under the management of contracted parties, including lending programs. With respect to all securities held by the local agency, and under management of any outside party that is not also a local agency or the State of California Local Agency Investment Fund, the report shall also include a current market value as of the date of the report, and shall include the source of this same valuation. (2) The quarterly report shall state compliance of the portfolio to the statement of investment policy, or manner in which the portfolio is not in compliance. (3) The quarterly report shall include a statement denoting the ability of the local agency to meet its pool's expenditure requirements for the next six months, or provide an explanation as to why sufficient money shall, or may, not be available. (4) In the quarterly report, a subsidiary ledger of investments may be used in accordance with accepted accounting practices. (c) Pursuant to subdivision (b), the treasurer or chief fiscal officer shall report whatever additional information or data may be required by the legislative body of the local agency. (d).The legislative body of a local agency may elect to require the report specified in subdivision (b) to be made on a monthly basis instead of quarterly. (e) For local agency investments that have been placed in the Local Agency Investment Fund, created by Section 16429.1, in National Credit Union Share Insurance Fund -insured accounts in a credit union, in accounts insured or guaranteed pursuant to Section 14858 of the Financial Code, or in Federal Deposit Insurance Corporation -insured accounts in a bank or savings and loan association, in a county investment pool, or any combination of these, the treasurer or chief fiscal officer may supply to the governing body, chief executive officer, and the auditor of the local agency the most recent statement or statements received by the local agency from these institutions in lieu of the information required by paragraph (1) of subdivision (b) regarding investments in these institutions. (f) The treasurer or chief fiscal officer shall not be required to render a quarterly report, as required by subdivision (b), to a legislative body or any oversight committee of a school district or county office of education for securities, investments, or moneys held by the school district or county office of education in individual accounts that are less than twenty-five thousand dollars ($25,000). (g) In recognition of the state and local interests served by the actions made optional in subdivisions (a) and (b), the Legislature encourages the local agency officials to continue taking the actions formerly mandated by this section. However, nothing in this subdivision may be construed to impose any liability on a local agency that does not continue to take the formerly mandated action. (Amended by Stats. 2009, Ch. 33Z Sec. 68.5. Effective January 1, 2010.) City of Santa Ana - Annual pp�� July 1, 2019 - Statement of Investment Policy 5 C�36 36 June 30, 2020 FIGURE 1 ALLOWABLE INVESTMENT INSTRUMENTS PER STATE GOVERNMENT CODE (AS OF JANUARY 1, 2019)A APPLICABLE TO ALL LOCAL AGENCIESB See "Table of Notes for Figure 1" on the next page for footnotes related to this figure. INVESTMENT r 0 • •r TYPE a Local Agency Bonds 5 years None None 53601(a) U.S. Treasury Obligations 5 years None None 53601(b) State Obligations: CA and 5 years None None 53601(d) Others CA Local Agency Obligations 5 years None None 53601(e) U.S. Agency Obligations 5 years None None 53601(f) Bankers' Acceptances 180 days 40%° None 53601(g) 25% of the Highest letter and Commercial Paper: Non -pooled Fundsr 270 days or less agency's moneys number 53601(h)(2)(C) rating by an NRSRO" Commercial Paper: Pooled 270 days or less 40% of the Highest letter and number 53635(a)(1) Funds' agency's moneys rating by an NRSRO" Negotiable Certificates of Deposit 5 years 30%1 None 53601(l) Non-negotiable Certificates of 5 years None None 53630 et seq. Deposit Placement Service Deposits 5 years 30%K None 53601.8 and 53635.8 Placement Service Certificates of Deposit 5 years 30%K None 53601.8 and 53635.8 Repurchase Agreements 1 year None None 536010) Reverse Repurchase Agreements and 92 daysL 20% of the base None" 536010) Securities Lending Agreements value of the portfolio "A" rating category or Medium -tens Notes" 5 years or less 30% its equivalent or 53601(k) better Mutual Funds and Money Market Mutual N/A 20%0 Multiple°,Q 53601(I) and Funds 53601.6(b) Collateralized Bank Deposits n 5 years None None 53630 et seq. and 53601(n) Mortgage Pass —through and Asset 5 years or less ° 20 /o "AA" rating category cr its equivalent or 53601(o) Backed Securities better County Pooled Investment N/A None None 27133 Funds Joint Powers Authority Pool N/A None Multiples 53601(p) Local Agency Investment Fund (LAIF) N/A None None 16429.1 Voluntary Investment Program Fund N/A None None 16340 "AA" rating category Supranational Obligations" 5 years or less 30% or its equivalent or 53601(q) better LOCAL AGENCY INVESTMENT GUIDELINES 55B-45 A Sources: Sections 16340, 16429.1, 27133, 53601, 53601.6, 53601.8, 53630 et seq., 53635, and 53635.8. e Municipal UtliYes Districtshave the authority under the Public Utilities Code Section 12871 to invest in certain securities not addressed here. C Section 53601 provides that the maximum term of any investment authorized under this section, unless otherwise stated, is five years. However, the legislative body maygrant express authority to make investments eitherspecificallyoras apart of an investment program approved by the legislative bodythatexceeds this five yearremainingmaturitylimit. Such approval must be issued no less than dhree months prior to the purchase of any security exceeding the five-year maturity limit. U Percentages apply to all portfolio invesbnents regardless of source of funds. For instance, cash from a reverse repurchase agreement would be subject to the restrictions. E No more than 30 percent of the agency's money may be in bankers'acceptances of any one commercial bank. F Includes agencies defined as a city, a district, or other local agency that do notpool money in deposits or investment with other local agencies, other than local agencies that have the same governing body. G Local agencies, other than counties or a city and county, may purchase no more than 10 percent of the outstanding commercial paper of any single issuer H Issuing corporation must be organized and operating within the U.S., have assets in excess of$500 million, and debt other than commercial paper must be in a rating category of'A"or its equivalent or higher by a nationally recognized statistical rating organization, or the issuing corporation must be organized within the U.S. as a special purpose corporation, trust, or LLC, have program wide credit enhancements, and have commercial paper that is rated 'A-1"or higher, or the equi✓alent, by a nationally recognized statistical rating agency. I Includes agencies defined as a county, a city and county, or other local agency that pools money in deposits or investments with otherlocal agencies, including local agencies that have the same goveming body. Local agencies that pool exclusively with other local agencies that have the same governing body must adhere to the limits set forth in Section 53601(h)(2)(C). I No more than 30 percent of the agencys money may be in negotiable certificates of deposit that are authorized under Section 53601(i). K No more than 30 percent of the agency's money may be invested in deposits, including certificates of deposit through a placement service (excludes negotiable certificates of deposit authorized under Section 53601(i)). L Reverse repurchase agreements or securities lending agreements may exceed the 92-day term if the agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity dates of the same security. M Reverse repurchase agreements must be made with primary dealers of the Federal Reserve Bank of New York or with a nationally or state chartered bank that has a significant relationship with the local agency. The local agencymusthave held the securities used for the agreements for at least 30 days. N 'Medium -term notes' are defined in Section 53601 as 'all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States.' o No more than 10 percent invested in any one mutual fund. This limitation does not apply to money market mutual funds. P A mutual fund must receive the highest ranking by not less than two nationally recognized rating agencies or the fund must retain an investment advisor who is registered with the SEC (or exempt from registration), has assets under management in excess of $500 million, and has at least five years' experience investing in instruments authorized by Sec- tions 53501 and 53635. Q Amoney marketmutual fund must receive the highest ranking by not less than two nationally recognized statistical rating organizations or retain an investment advisor registered with the SEC or exempt from registration and who has not less than five years' experience investing in money market instruments with assets under management in excess of$500 Million. R Investments in notes, bonds, or other obligations under Section 53601(n) require that collateral be placed into the custody of a trust company or the trust department of bank that is not affiliated with the issuer of the secured obligation, among other specific collateral requirements. s A joint powers authority pool must retain an investment advisor who is registered with the SEC (or exempt from registration), has assets undermanagementin excess of$500 million, and has at Least five years' experience investing Ln instruments authorized by Section 53601, subdivisions (a) to (o). T Local entities can depositbetween $200 million and $10 billion into the Voluntary Investment Program Fund, upon approval by their governing bodies Deposits in the fund will be invested in the Pooled Money Investment Account. U Only those obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), and Inter -American Development Bank (IADB), with a maximum remaining maturity of five years or less LOCAL AGENCY INVESTMENT GUIDELINES 55B-46 ii. Also, while not expressly prohibited by State law, unregistered securities, such as Rule 144A securities, may not be purchased by local agencies because local agencies do not meet the Securities and Exchange Commission definition of Qualified Institutional Buyers (QIB) 3 Section 53635.2 states that all local agency money may be invested in investments set forth in 53601 or deposited for safekeeping in state or national banks, savings associations, federal associations, credit unions, or federally insured industrial loan companies in this State. It also specifies certain requirements that such financial institutions must satisfy to hold local agency money. MINIMUM LEGAL REQUIREMENT: To be eligible to receive local agency money, a financial institution must receive an overall rating of not less than "satisfactory' from the appropriate federal supervisory agency for meeting the criteria specified in Section 2906 of Title 12 of the U.S. Code (Community Reinvestment Act of 1977). The Community Reinvestment Act of 1977 (Act) requires financial institutions to demonstrate their commitment to meeting the credit needs of local communities in which they are chartered to do business. For the purpose of the Act, the appropriate federal supervisory agency includes: The Comptroller of the Currency with respect to national banks; • The Board of Governors of the Federal Reserve System with respect to state chartered banks that are members of the Federal Reserve system and bank holding companies; • The Federal Deposit Insurance Corporation (FDIC) with respect to state chartered banks and savings banks that are not members of the Federal Reserve system and the deposits of which are insured by the FDIC; and • The Director of Office of Thrift Supervision with respect to savings associations (the deposits of which are insured by the FDIC) and savings holding companies. 3 CDIAC's "Issue Brief. Rule 144A Securities" prooides a sun n ary ofsecurities in this class: zozuzo. treasurer.ca.goz/cdiar/issuebrief.i20130Zpdf. LOCAL AGENCY INVESTMENT GUIDELINES 55B-47 APPENDIX Ill. GLOSSARY OF CITY OF SANTA ANA INVESTMENT POLICY & RELATED CALIFORNIA CODE TERMS AGENCIES: Federal agency securities and/or Government Sponsored Enterprises (GSE). [Referenced pages: 9, 10, 15, 17, 29] ASSET- BACKED SECURITIES (ABS): securities supported by pools of installment loans or leases or by pools of revolving lines of credit. [Referenced pages: 13] ASSOCIATION OF PUBLIC TREASURERS OF THE UNITED STATES AND CANADA: The Association of Public Treasurers of the United States and Canada (APTUS&C), formerly called the Municipal Treasurers Association of the United States and Canada (MTA US & C) was founded in 1965 and represents public treasury and finance officials in local, county, and state/provincial governments throughout North America. The Association provides educational seminars and conferences, publications, policy and legislative information, and technical assistance to members. [Referenced pages: 6, 21] BENEFICIAL SHARES/MONEY MARKET SHARES: In US securities law, a beneficial owner (as distinct from a "nominee owner," "registered owner," or "record holder") of a security includes any person who, directly or indirectly, has or shares voting or investment power also known as money market shares. [Referenced pages: 12, 181 BENCHMARK: A comparative base for measuring the. performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio's investments. [Referenced pages: 5, 191 BILLS OF EXCHANGE/BANKERS ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer. These instruments are accepted as payment by banks engaged in financing trade. For example, a U.S. corporation planning to purchase goods from a foreign vendor will ask its bank to issue a letter of credit on behalf of the corporation. The letter of credit will allow the foreign vendor to draw a draft on the U.S. corporation's bank to pay for the merchandise. Upon receipt of the letter and the draft, the foreign vendor will ship the merchandise and present the draft at its bank, which allows the vendor to receive payment for the merchandise sold. The vendor's foreign bank forwards the draft to the U.S. bank, at which point the draft is "accepted" as an obligation that the purchaser's U.S. bank must pay at a specified maturity date. The U.S. bank may keep the acceptance or may sell it to a third party investor. Bankers' acceptances are sold at a discount and are considered fairly safe investment instruments because both the purchaser's bank and the initiating corporation are obligated to pay the holder at maturity. [Referenced pages: 9, 17, 29] BOOK VALUE: The value at which a debt security is shown on the holder's balance sheet. Book value is acquisition cost less amortization of premium or plus accretion of discount. [Referenced pages: 4, 12, 19] BOOK ENTRY: An electronic system of accountability, custody, transfer, and settlement of securities. Book -entry systems allow rapid and accurate transfers of securities with simultaneous cash settlement. [Referenced pages: 29, 31, 33] BROKER: A broker brings buyers and sellers together for a commission. [Referenced pages: 10, 23] City of Santa Ana Annual July 1, 2019 Statement of Investment Policy 5W IgA4Q June 30, 2020 BROKER -DEALER: Broker -dealer is used in securities regulation parlance to describe stock and securities brokerages, because most act as both agents and principals. A brokerage acts as a broker (or agent) when it executes orders on behalf of clients and acts as a dealer, or principal, when it trades for its own account. A broker -dealer is a natural person, company or other organization that engages in the business of trading securities for its own account or on behalf of its customers. [Referenced pages: 3, 7, 8, 23] CALIFORNIA MUNICIPAL TREASURERS ASSOCIATION (CMTA): Is the professional society of active public treasurers of California counties, cities and special districts. It sets ethical standards for the treasury profession in state and local governments in California. The Association provides educational seminars and conferences, publications, policy and legislative information, and technical assistance to members. [Referenced pages: 6, 21] CERTIFICATE OF DEPOSIT/ NEGOTIABLE CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Time certificates of deposit are collateralized in accordance with the State code. Large -denomination CD's are typically negotiable and non -collateralized. These instruments are issued by depository institutions such as commercial banks, savings institutions and credit unions against funds invested for a specified time period (typically between 0 to 5 years). The term "CD" by itself generally refers to negotiable certificates of deposit that can be resold to other parties. CDs, however, also may be nonnegotiable. Nonnegotiable CDs cannot be actively traded on the secondary markets and generally are held to maturity by the party that purchased them. Yields on CDs vary depending on liquidity, credit quality; and, for nonnegotiable CDs, whether they are collateralized. [Referenced pages: 11, 16, 17, 30] COLLATERAL: Securities, evidence of deposit or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. [Referenced pages: 10, 14, 16, 30, 31, 33] COLLATERLIZED MORTGAGE OBLIGATION (CMO): Mortgage backed bond that separates mortgage pools into different maturity classes called traunches. CMO's are issued by Federal National Mortgage Corp. and Federal National Mortgage Association and are usually backed with a government guarantee and have an AAA bond rating. Planned Amortization Class CMOs (PAC) have stable prepayment schedules that do not react unfavorably in wide market swings. (Referenced page: 33] COMMERCIAL PAPER (CP): An unsecured obligation issued by a corporation or bank to finance its short- term credit needs, such as accounts receivable and inventory. Maturities typically range from 2 to 270 days. [Referenced pages: 10, 17, 28, 30] COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report of the (entity). It includes five combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance -related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section. [Referenced page: 1] CONSTANT MATURITY TREASURY (CMT) RATE: CMT rate is an adjustment for equivalent maturity, used by the Federal Reserve Board to compute an index based on the average yield of various Treasury securities maturing at different periods. [Referenced page: 5, 191 CORPORATE BOND: A debt security issued by corporation and sold to investors. The backing for the bond is usually the payment ability of the company, which is typically money to be earned from future operations. [Referenced page: 6] City of Santa Ana - Annual July 1, 2019 - Statement of Investment Policy i, 55 B49 June 30, 2020 CREDIT QUALITY: The measurement of the financial strength of a bond issuer. This measurement helps an investor to understand an issuer's ability to make timely interest payments and repay the loan principal upon maturity. Generally, the higher the credit quality of a bond issuer, the lower the interest rate paid by the issuer because the risk of default is lower. Credit quality ratings are provided by nationally recognized rating agencies. [Referenced page: 4] CREDIT RISK: The risk to an investor that an issuer will default in the payment of interest and/or principal on a security. [Referenced pages: 2, 3, 171 DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. [Referenced pages: 3, 7, 8, 10, 16, 23, 31, 321 DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. See Safekeeping And Custody: [Referenced pages: 16, 18] DERIVATIVE: Financial instruments which have a principal and/or interest payment subject to uncertainty as to timing and/or amount including financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities). [Referenced page: 13] DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns. [Referenced page: 16] DURATION: Is a measure of time (term of investment) which also is a measure of the sensitivity of the price (the value of principal) of a fixed -income investment to a change in interest rates. Duration is expressed as a number of years. Rising interest rates mean falling bond prices, while declining interest rates mean rising bond prices. [Referenced pages: 4, 17] FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per deposit. FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open -market operations. [Referenced pages: 27, 35] FEDERAL FARM CREDIT BANK (FFCB): Notes are high credit quality, short-term debt instruments, issued at a discount to their par amount, similar to U.S. Treasury bills. FFCB provides a steady and continuous stream of capital for the agricultural sector in all 50 states and Puerto Rico. Presently, the Farm Credit System funds approximately 35 percent of all U.S. farm business debt. [Referenced page: 9] FEDERAL HOME LOAN BANKS (FHLB): Government sponsored wholesale banks (currently 12 regional banks) which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies. The mission of the FHLB is to liquefy the housing related assets of its members who must purchase stock in their district Bank. [Referenced pages: 9, 16, 26, 27] FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA, like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder -owned corporation. The corporation's purchases include a variety of adjustable mortgages and City of Santa Ana - Annual July 1, 2019 - Statement of Investment Policy 5W 50 June 30, 2020 second loans, in addition to fixed-rate mortgages. FNMA's securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest. [Referenced page: 9] FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven member Board of Governors in Washington, D.C., 12 regional banks and about 5,700 commercial banks that are members of the system or interest -bearing, and usually have a limited or nonexistent secondary market. Commercial paper is usually issued by companies with high credit ratings, meaning that the investment is almost always relatively low risk. [Referenced pages: 7, 9, 10, 26, 31, 32] FIDUCIARY: Person, company, or association holding assets in trust of a beneficiary. [Referenced pages: 14, 23] FINANCIAL INDUSTRY REGULATORY AUTHORITY, INC. (FINRA): FINRA is a private corporation that acts as a self -regulatory organization (SRO). FINRA is the successor to the National Association of Securities Dealers, Inc. (NASD) and the member regulation, enforcement and arbitration operations of the New York Stock Exchange. It is a non -governmental organization that regulates member brokerage firms and exchange markets. The government agency which acts as the ultimate regulator of the securities industry, including FINRA, is the Securities and Exchange Commission. [Referenced page: 71 FUTURES CONTRACT: Agreement to buy or sell a specific amount of a commodity or financial instrument at a particular price on a stipulated future date. [Referenced pages: 9, 33] EX OFFICIO: Ex officio describe a position someone automatically gains because of another job or position he/she already holds. For example, the United States Vice President is the ex officio President of the Senate. In a like fashion, in accordance with the California Government Code the Chief Fiscal Officer of a city which does have a specified City Treasurer is "ex officio" City Treasurer. [Referenced page: 6] GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith & credit of the U.S. Government. Ginnie Mae securities are backed by FHA, VA or FHA mortgages. The term "pass- throughs" is used to describe Ginnie Maes. [Referenced page: 9] GAAP (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES): Is a collection of commonly -followed accounting rules and standards for financial reporting. The acronym is pronounced "gap." GAAP specifications include definitions of concepts and principles, as well as industry -specific rules. [Referenced page: 2] GUARANTEED INVESTMENT AGREEMENTS OR CONTRACTS (GIC): An agreement or contract that guarantees repayment of principal and a fixed or floating interest rate for a predetermined period of time. [Referenced page: 14] INTEREST: The amount earned while owning a debt security, generally calculated as a percentage of the principal amount. [Referenced pages: 9, 12, 13, 14, 15, 16, 17, 26, 29, 32, 33, 34, 35] INVERSE FLOATER: A bond or other type of debt whose coupon rate has an inverse relationship to a benchmark rate. An inverse floater adjusts its coupon payment as the interest rate changes. (Referenced pages: 34] City of Santa Ana - Annual July1, 2019 - Statement of Investment Policy � June 30, 2020 INVESTMENT POLICY: A concise and clear statement of the objectives and parameters formulated by an investor or investment manager for a portfolio of investment securities. [Referenced pages: 1, 2, 3, 5, 6, 8, 10, 11, 13, 15, 16, 18, 19, 20, 21, 22, 34, 35] ISSUER: A legal entity that has the power to issue and distribute securities. Issuers include corporations, municipalities, foreign and domestic governments and their agencies, and investment trusts. [Referenced pages: 3, 7, 12, 16, 17, 19, 23, 28, 30, 31, 33, 35] JOINT POWERS AUTHORITIES (JPAs): JPAs are legally created entities that allow two or more public agencies to jointly exercise common powers. Forming such entities permits public agencies with the means to provide services more efficiently and in a cost-effective manner such as JPA investment pools. The Joint Exercise of Powers Act, as codified in California Government Code Section 6500, governs JPAs. Under the Act, JPAs are restricted to use by public agencies only. However, the term public agency is defined very broadly. A public agency can include, but is not limited to, the federal government, the state or state departments, local agencies, mutual water companies, public districts and recognized Indian tribes. [Referenced pages: 15, 33] LIQUIDITY: Liquidity describes the degree to which an asset or security can be quickly bought or sold in the market without affecting the asset's price. [Referenced pages: 2, 3, 4, 5, 11, 12, 13, 19, 20, 211 LOCAL AGENCY/PUBLIC LOCAL AGENCY: Means a county, city, city and county, including a chartered city or county, school district, community college district, public district, county board of education, county superintendent of schools, or any public or municipal corporation. [Referenced pages: 10, 11, 15, 17, 20, 21, 22, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35] LOCAL AGENCY INVESTMENT FUND (LAIF): A voluntary program created by statute in 1977 as an investment alternative for California's local governments and special districts. Local agencies may participate in the state's portfolio, which invests hundreds of millions of dollars, using the investment expertise of the Treasurer's Office investment staff at no additional cost to the taxpayer. LAIF is part of the Pooled Money Investment Account (PMIA). The PMIA began in 1955 and oversight is provided by the Pooled Money Investment Board (PMIB) and an in-house Investment Committee. The PMIB members are the State Treasurer, Director of Finance, and State Controller. The Local Investment Advisory Board (LIAB) provides oversight for LAIR The Board consists of five members as designated by statute. The State Treasurer, as Chairman, or his designated representative appoints two members qualified by training and experience in the field of investment or finance, and two members who are treasurers, finance or fiscal officers or business managers employed by any county, city or local district or municipal corporation of this state. [Referenced pages: 11, 15, 17, 21, 22, 25, 26, 34, 35) LOCAL GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment. [Referenced page: 14] MARKET RISK: The risk that the value of a security will rise or decline as a result of changes in market conditions. [Referenced page: 131 MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold. [Referenced pages: 3, 4, 5, 10, 16, 20, 30, 33, 35) MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase or reverse repurchases a security that establishes each parry's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer -lender to liquidate the underlying securities in the event of default by the seller -borrower. [Referenced page: 101 City of Santa Ana - Annual July 1, 2019 - Statement of Investment Policy d1gly- 52 June 30, 2020 MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. [Referenced pages: 3, 4, 5, 9, 10, 11, 12, 13, 17, 18, 19, 20, 29, 30, 31, 32, 33, 34, 35] MEDIUM TERM CORPORATE NOTES (MTN): Refers to all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. [Referenced pages: 12, 17] MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers' acceptances, etc.) are issued and traded. A money market mutual fund is a type of fixed income mutual fund that invests in debt securities characterized by their short maturities and minimal credit risk. Money market securities must be highly liquid and of the highest quality, thus money market mutual funds are among the lowest -volatility types of investments. [Referenced pages: 4, 12, 14, 15, 16, 18, 32] MONEY MARKET FUNDS: Seek to limit exposure to losses due to credit, market, and liquidity risks. Money market funds in the United States are regulated by the Securities and Exchange Commission (SEC) under the Investment Company Act of 1940. Rule 2a-7 of the act restricts the quality, maturity and diversity of investments by money market funds. Under this act, a money fund mainly buys the highest rated debt, which matures in under 13 months. The portfolio must maintain a weighted average maturity (WAM) of 60 days or less and not invest more than 5% in any one issuer, except for government securities and repurchase agreements. Unlike most other financial instruments, money market funds seek to maintain a stable value of $1 per share. Funds are able to pay dividends to investors. [Referenced page: 12, 321 MUTUAL FUND: An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual funds are operated by money managers, who invest the fund's capital and attempt to produce capital gains and income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus. A money market mutual fund is a type of fixed income mutual fund that invests in debt securities characterized by their short maturities and minimal credit risk. [Referenced pages: 4, 12, 14, 15, 16, 32] MORTGAGE PASS -THROUGH SECURITY: These instruments are based on pooled home mortgages sold by federal agencies and instrumentalities such as Ginnie Mae and Freddie Mac. The amount of principal and interest paid to investors varies from month to month in part because homeowners may accelerate principal payments on a mortgage. The anticipated pay down schedule of the securities will vary from mortgage pool to mortgage pool. Mortgage pass -through securities are complex investment instruments that do not respond to market forces like other, more standard investment instruments. In a declining interest rate environment, mortgage pass -through investors face higher reinvestment risk and lower returns from their investment than investors in other instruments because homeowners tend to refinance in lower interest rate environments, accelerating the principal payments on their mortgages. Thus, the mortgage pass -through investor receives the accelerated principal payments at par and must reinvest these earnings in a lower interest rate environment. [Referenced page: 331 NATIONAL ASSOCIATION OF STATE TREASURERS (NAST]: Provides advocacy and support that enables member states to pursue and administer sound financial policies and programs benefiting the citizens of the nation. The Association provides educational seminars and conferences, publications, policy and legislative information, and technical assistance to members. [Referenced page: 61 NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO]: A NSRO is a credit rating agency (CRA] that issues credit ratings that the U.S. Securities and Exchange Commission (SEC] permits other financial firms to use for certain regulatory purposes. [Referenced page: 30] City of Santa Ana - Annual July 1, 2019 - Statement of Investment Policy %� F53 June 30, 2020 OPTION: Right to buy or sell property that is granted in exchange for an agreed upon sum. If the right is not exercised after a specified period, the option expires and the option buyer forfeits the money. [Referenced page: 33] PAR AMOUNT: The face amount or value of a bond. [Referenced page: 19, 35] PASS -THOUGH SECURITY: A pool of fixed income securities backed by a package of assets (i.e. mortgages)where the holder receives the principal and interest payments. [Referenced pages: 33] PERFECTED INTEREST: Perfected interest refers to establishment of a superior ownership right in and legal control over securities assests held by a bank custodian on the purchaser's behalf and is intended to protect the purchaser from the custodial bank's own creditors in the event of a bank default and filing for bankruptcy. [Referenced page: 16] PORTFOLIO: Collection of securities held by an investor. [Referenced pages: 1, 2, 3, 4, 5, 6, 7, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 25, 31, 35] PRINCIPAL: The face value or par value of an investment. [Referenced pages: 3, 4, 9, 13, 14, 21, 29] PRUDENT INVESTOR STANDARD: A standard defined under State Government Code Section 53600.3 that states when investing, reinvesting, purchasing, acquiring, exchanging selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the City, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the local agency. [Referenced page: 2, 9, 111 RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond the current income return. [Referenced pages: 4, 13, 19] REPURCHASE AGREEMENT (RP or REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security "buyer" in effect lends the "seller" money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. (E.g. - A contract in which the seller of securities, such as Treasury Bills, agrees to buy them back at a specified time and price; also called buyback.) See also Master Repurchase Agreement. [Referenced pages: 10, 16, 17, 29, 30, 31, 32] REVERSE REPURCHASE AGREEMENT (REVERSE RP or REPO): A reverse -repurchase agreement (reverse repo) involves an investor borrowing cash from a financial institution in exchange for securities. The investor agrees to repurchase the securities at a specified date for the same cash value plus an agreed upon interest rate. Although the transaction is similar to a repo, the purpose of entering into a reverse repo is quite different. While a repo is a straightforward investment of public funds, the reverse repo is a borrowing. [Referenced pages: 14, 29, 30, 31, 32] SAFEKEEPING AND CUSTODY: In a third -party safekeeping agreement, the local government agency arranges for a firm other than the party that sold the investment to provide for the transfer and safekeeping of the securities. Financial firms should not serve as both government broker -dealer and custodian. Safekeeping represents a financial institution's obligation to act on behalf of the owner under the owner's control. Custody is a more clearly defined control position by the agent responding to the owner's requirements. Custody normally does not take place in the governmental entities depository bank. Investments should be settled in a delivery -versus -payment (DVP) basis. In this procedure, the buyer's City of Santa Ana -Annual G 5�July 1, 2019 - Statement of Investment Policy June 30, 2020 payment for securities is due at the time of delivery. Security delivery and payment occur simultaneously. This practice ensures that no funds are at risk in an investment transaction as funds are not released until securities are delivered, ensuring the governmental entity has either money or securities at all times during the transaction. [Referenced page: 16] SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution. [Referenced page: 4] SECURITIES AND EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation. [Referenced pages: 12, 32, 33] SPECULATION: Assumption of risk in anticipation of gain but recognizing a higher than average possibility of loss. [Referenced page: 14] SWAP: Trading one asset for another. [Referenced page: 4] SUPRANATIONAL OBLIGATIONS: United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter -American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase or sale within the United States. [Referenced pages: 9, 17] TREASURIES: Negotiable U.S. Government debt obligations, backed by its full faith and credit, comprising of short-term Treasury Bills (maturity less than one year), medium -term Treasury Notes (maturity one to ten years), and long-term Treasury bonds (maturity from 10 to 30 years). [Referenced pages: 3, 5, 17] TREASURY BILLS (T-Bills): A non -interest bearing discount security issued by the US Treasury to finance the national debt. A T-Bill is a short-term debt obligation backed by the U.S, government with a maturity of less than one year, sold in denominations of $1,000 up to a maximum purchase of $5 million. T-bills are sold with maturities of four, thirteen, twenty-six and fifty-two weeks. They do not pay interest, but rather are sold a discount to their face value. Effective interest is earned at maturity. [Referenced pages: 9, 10, 17] TREASURY BONDS (T-Bonds): Long-term coupon -bearing US Treasury securities issued as direct obligations of the US Govemment and having initial maturities of more than 10 to 30 years. Next to treasury bills (maturity less than one year), and treasury notes (maturity one to ten years) T-bonds are the safest form of marketable investment. [Referenced pages: 9, 10, 17] TREASURY NOTES: Medium -term coupon -bearing US Treasury securities issued as direct obligations of the US Government and having initial maturities from one to 10 years. Treasury notes are available from the government with either a competitive or noncompetitive bid. [Referenced pages: 9, 10, 17, 29] WEIGHTED AVERAGE MATURITY (WAM): The average maturity of all the securities that comprise a portfolio. According to SEC rule 2a-7, the WAM for SEC registered money market mutual funds may not exceed 90 days and no one security may have a maturity that exceeds 397 days. [Referenced page: 19] YIELD: The rate of annual income return on an investment, expressed as a percentage: (a) Income Yield is obtained by dividing the current dollar income by the current market price for the security; (b) Net Yield or Yield to Maturity is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. [Referenced pages: 3, 4, 5, 19, 211 City of Santa Ana - Annual July 1, 2019 - Statement of Investment Policy 5 � 5 June 30, 2020 APPENDIX IV. GLOSSARY OF ADDITIONAL COMMON PUBLIC LOCAL AGENCY INVESTMENT TERMS ACCRUED INTEREST: The accumulated interest payable on a security since the last interest payment made by the issuer. AMORTIZATION: The systematic reduction of the amount owed on a debt issue through periodic payments of principal. ASKED PRICE (OR ASK): The price at which securities are offered. BASIS POINT: A unit of measurement used in the valuation of fixed -income securities equal to 1/100 of 1 percent of yield, e.g., "1/4" of 1 percent is equal to 25 basis points. BID PRICE: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) See Offer Price. CALIFORNIA DEBT AND INVESTMENT ADVISORY COMMISSION (CDIAC): This California state commission provides information, education and technical assistance on debt issuance and public fund investments to local public agencies and other public finance professionals. The Commission was created in 1981 as the California Debt Advisory Commission to function as the State's clearinghouse for public debt issuance information and is tasked to assist state and local agencies with the monitoring, issuance and management of public debt. The Commission's name was changed to the California Debt and Investment Advisory Commission with the passage of Chapter 833, Statutes of 1996 (AB 1197), and its mission was expanded to cover public investments. CALIFORNIA SOCIETY OF MUNICIPAL FINANCE OFFICERS (CSMFO): Is a professional association of state, county, and local government finance officers in California. A statewide organization serving all California municipal finance professionals, an affiliate of the nationwide Government Finance Officers Association (GFOA), membership is open to anyone in the State of California actively engaged in government finance in any city, county, or special district. CSMFO has technical and professional committees that deal with financial issues facing government and the public. CALLABLE SECURITIES: A security that can be redeemed by the issuer before the scheduled maturity. CALL PRICE (OR CALL): The price at which an issuer may redeem a bond prior to maturity. The price is usually at a slight premium to the bond's original issue price to compensate the holder for loss of income and ownership. CalTRUST (INVESTMENT TRUST OF CALIFORNIA): An investment pool partnership authorized under California state law created by the CSAC (California State Association of Counties) Finance Corporation and the League of California Cities to provide a convenient method for local agencies to pool their assets for investment. State statute authorizes local agencies to directly invest in joint investment pools, such as CalTRUST. There is no requirement that a local agency become a JPA member. Local agencies have four account options — Government Fund, Money Market Fund, Short -Term, or Medium -Term accounts. Local agencies can select an account option which matches their investment time horizon and cash flow needs and easily reallocate among accounts as those needs change. City of Santa Ana - Annual July 1, 2019 - Statement ofInvestment Policy 55t156 June 30,2020 CERTIFICATE OF DEPOSIT ACCOUNT REGISTRY SERVICE (CDARS): A program with an approved depository that removes the need for collateral by providing full FDIC insurance for certificates of deposit. COLLATERALIZED BANK DEPOSITS: Collateralized bank deposits can be broadly defined as notes, bonds, and other obligations (such as nonnegotiable CDs) that are secured at all times by valid first party interest in collateral. For California local agencies, the collateral must meet specified Government Code requirements. CONVEXITY: Is the measure of the curve in the relationship between a bond's price and its yield. Consider the price and yield of Bond A on a graph, where price is marked on the vertical axis, and yield on the horizontal. A bond's price and yield are inversely related, so as its price decreases, its yield increases. CURRENT YIELD (CURRENT RETURN): A yield calculation determined by dividing the annual interest received on a security by the current market price of that security. CUSTODIAN BANK: A financial institution that holds customers' securities for safekeeping to minimize the risk of their theft or loss. A custodian holds securities and other assets in electronic or physical form. CUSIP: CUSIP or CUSPIC number stands for Committee on Uniform Securities Identification Procedures. A CUSIP number identifies most financial instruments, including: stocks of all registered U.S. and Canadian companies, commercial paper, and U.S. government and municipal bonds. The CUSIP system (formally known as CUSIP Global Services) --owned by the American Bankers Association and managed by Standard & Poor's - facilitates the clearance and settlement process of securities. CUSIP numbers consist of nine characters (including letters and numbers) that uniquely identify a company or issuer and the type of financial instrument. A similar system is used to identify foreign securities (CUSIP International Numbering System or CINS). CINS employs the same nine character identifier as CUSIP, but also contains a letter in the first position to signify the issuer's country or geographic region. DEBENTURE: A bond secured only by the general credit of the issuer. DISCOUNT: The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount. DISCOUNT SECURITIES: Non -interest bearing money market instruments that are issued a discount and redeemed at maturity for full face value (e.g. - U.S. Treasury Bills). FAIR VALUE: The amount at which an investment could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S&L's, small business firms, students, farmers, farm cooperatives, and exporters. FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open -market operations. FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money. City of Santa Ana • Annual July 1, 2019 - Statement of Investment Policy 5 �gg G� 57 June 30, 2020 INVERTED YIELD CURVE: A chart formation that illustrates long-term securities having lower yields than short-term securities. This configuration usually occurs during periods of high inflation coupled with low levels of confidence in the economy and a restrictive monetary policy. INVESTMENT -GRADE OBLIGATIONS: An investment instrument suitable for purchase by institutional investors under the prudent person rule. Investment -grade is restricted to those obligations rated BBB or higher by a rating agency. LADDERING: Is a bond investment strategy whereby an investor staggers the maturity of the bonds in his/her portfolio so that the bond proceeds can be reinvested at regular intervals. Laddering avoids the risk of reinvesting a large portion of assets in an unfavorable financial environment. Each "rung" of the ladder is a bond of a specific maturity date and the "height" of the ladder is the difference between the shortest maturity bond and the longest maturity bond. Benefits of utilizing a rolling inventory of bonds with "laddered" maturities are primarily three -fold: (1) Interest rate risk is decreased by holding both short-term and long-term bonds thereby spreading risk along the interest rate curve. If rates are rising, as one bond matures the funds can be re -invested into higher yield bonds. (2) - Decrease re -investment risk because as one bond in the ladder matures, the cash is re -invested, but it only represents a portion of the total portfolio. Even if prevailing rates at the time of re -investment are lower than the previous bond was returning, the smaller amount of reinvestment dollars mitigates the risk of investing a lot of cash at a low return. (3) - Maintain steady cash flows to encourage regular saving to encourage an income -producing portfolio MARK -TO -MARKET: The process whereby the book value or collateral value of a security is adjusted to reflect its current market value. OFFER PRICE (OR OFFER): The price asked by a seller of securities. (When you are buying securities, you ask for an offer.) See Asked Price and Bid Price. OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve's most important and most flexible monetary policy tool. PASSBOOK SAVINGS ACCOUNT: A savings account in which deposits and withdrawals are recorded in the depositor's passbook. QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits. REINVESTMENT RISK: The risk that a fixed -income investor will be unable to reinvest income proceeds from a security holding at the same rate of return currently generated by that holding. SEC RULE 15(C)3-1 [Uniform Net Capital Rule]: Every broker or dealer must at all times have and maintain net capital no less than the greater of the highest minimum requirement applicable to its ratio requirement under paragraph (a)(1) of this section, or to any of its activities under paragraph (a)(2) of this section, and must otherwise not be "insolvent" as that term is defined in paragraph (c)(16) of this section. City of Santa Ana - Annual July 1, 2019 - Statement of Investment Policy 5tM58 June 30, 2020 STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, SLMA, etc.) and Corporations, which have imbedded options (e.g., call features, step-up coupons, floating rate coupons, derivative -based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve. TIME DEPOSITS: These instruments are issued by depository institutions against funds deposited for a specified length of time. For the purpose of this report, time deposits (which would include instruments such as deposit notes) are distinct from CDs. The primary difference between the two is the method of interest calculation. Interest payments on time deposits are calculated in a manner similar to that of corporate bonds whereas interest payments on CDs are calculated similarly to money market instruments. TOTAL RETURN: All money earned on a bond or bond fund from annual interest and market gain or loss, if any, including the deduction of sales charges and/or commissions. WHEN ISSUED (WI): A conditional transaction in which an authorized new security has not been issued. All "when issued" transactions are settled when the actual security is issued. YIELD CURVE: A graphic representation that depicts the relationship at a given point in time between yields and maturity for bonds that are identical in every way except maturity. A normal yield curve may be alternatively referred to as a positive yield curve. YIELD TO CALL (YTC): The rate of return you receive if you hold the bond to its call date and the security is redeemed at its call price. YTC assumes interest payments are reinvested at the yield -to -call date. YIELD TO MATURITY (YTM): The overall interest rate earned by an investor who buys a bond at the market price and holds it until maturity. Mathematically, it is the discount rate at which the sum of all future cash flows (from coupons and principal repayment) equals the price of the bond. YIELD TO WORST (YTW): The lower yield of yield -to -call and yield -to -maturity. Investors of callable bonds should always do the comparison to determine a bond's most conservative potential return. ZERO -COUPON SECURITIES (STRIPS): Security that is issued at a discount and makes no periodic interest payments. The rate of return consists of a gradual accretion of the principal of the security and is payable at par upon maturity. California state law does not allow local agencies to purchase these securities because of the greater interest rate risk and price volatility associated with them. City of Santa Ana - Annual July 1, 2019 - Statement of Investment Policy 5 � L59 June 30, 2020 CITY OF SANTA ANA FINANCE & MANAGEMENT SERVICES AGENCY BROKER / DEALER QUESTIONNAIRE AND CERTIFICATION 1. Name of Firm 2. Address: (Local) (Headquarters) 3. Telephone No. (Toll Free) (Direct #) 4. Primary Representative Manager / Partner -in -Charge Name Name Title Title Telephone No. Telephone No. Fax No. Fax No. Email Email No. of Years in Institutional Sales: No. of Years in Institutional Sales: SEC Licenses: SEC Licenses: 5. Are you a Primary Dealer in U.S. Government Securities? ............................................( ) Yes ( ) No 6. Are you a Regional Dealer in U.S. Government Securities? .......................................... ( ) Yes ( )No 7. Are you a Broker - i.e., You DO NOT own positions of securities? ................................ ( ) Yes ( ) No 8. Are you NASD certified and licensed to sell to California municipalities? ...................... ( ) Yes ( ) No 9. What is the net capitalization of your firm? 10. What is the date of your firm's fiscal year end? 11. Is your firm owned by a holding company? If so, what is the name and net capitalization of the holding firm? 12. Please provide your normal custody and delivery process: City of Santa Ana Annual July 1, 2019 - Statement of Investment Policy %� 0 June 30, 2020 13. Which of the following securities are offered regularly by your trading desk? [ ] US Treasuries (Bills, CMB, Notes) [ ] Federal Agencies (Discount Notes, Bonds) [ ] Commercial Paper [ ] Bankers Acceptances [ ] Negotiable Cart of Deposit [ ] Medium Term Corporate Notes [ ] Repurchase Agreements [ ] Money Market Funds [ ] Asset Backed Securities/Mortgages [ ] Reverse Repurchase Agreements 14. Which of the above securities does your firm specialize in marketing? 15. Please identify your most directly comparable City/Local Agency clients in our geographical area: Entity Contact Person Title Phone No. Client Since 16. What reports, transactions, confirmations and paper trail do your local agency clients receive? (Please include samples.) 17. Please include samples of research reports, market information, or publications that your firm regularly provides to local agency clients. 18. What precautions are taken by your firm to protect the interest of the public when dealing with government agencies as investors? City of San a - Annual July1, 2019 - Statement of Investment Policy IMS i June 30, 2020 19. Have you or your firm been censored or punished by a regulatory State or Federal Agency for improper or fraudulent activities, related to the sale of securities? ( ) Yes ( ) No 20. If answer to question # 19 is YES, please explain charge(s), date(s), action(s) taken: 21. Attach certification documentation of your capital adequacy and financial solvency. This needs to be an audited financial statement by an independent, recognized accounting firm. The audited financial statement must be provided annually to the City within 120 days of your firm's fiscal year-end. 22. Attach a complete schedule of your applicable fees and charges. 23. Does your firm offer investment training to your local agency clients? ( ) Yes ( ) No I hereby certify that I have personally read the City of Santa Ana's Investment Policy and the California Government Codes pertaining to investments and deposits of the City of Santa Ana, and have implemented reasonable procedures and a system of controls designed to preclude imprudent investment activities arising out of transactions conducted between our firm and the City of Santa Ana. I understand, however, that our firm is not obligated to monitor the percentage limits on the investments as described in the City of Santa Ana's Investment Policy. All sales personnel will be routinely informed of the City of Santa Ana's investment objectives, horizon, outlook, strategies and risk constraints whenever we are so advised. We pledge to exercise due diligence in informing the City of Santa Ana's Investment Officers of all foreseeable risks associated with financial transactions conducted with our firm. I attest to the accuracy of our responses to your questionnaire. NOTE., Completion of this questionnaire is only part of the City of Santa Ana's certification process and DOES NOT guarantee that the applicant will be approved to do business with the City of Santa Ana. SIGNED: COUNTERSIGNED: :ompany president or person in charge of government securities operations) DATE: DATE: City of Santa Ana - Annual Statement of Investment Policy %� -6 July 1, 2019 - June 30, 2020 EXHIBIT 3 o 00 ASSOCIATION OF PUBLIC TREASURERS UNITED STATES & CANADA PO Box 591 •Tawas City, MI 48764 Telephone: 9 89.820.5 205 www.aptusc.Org September 21, 2018 Rosie Perez Treasury Services Specialist 20 Civic Center Plaza Santa Ana, CA 92702 Dear Ms. Perez: The Association of Public Treasurers of the United States & Canada is pleased to present the City of Santa Ana with the Association's Investment Policy Certificate of Excellence Award. The members of the Association's Investment Policy Certification Committee congratulate your government for its success in developing a comprehensive written investment policy that meets the criteria set forth by the Association's Investment Policy Certificate Committee. A team of reviewers from the Investment Policy Certification Committee reviewed your Investment Policy and approved your entity's policy for the Certificate of Excellence Award. You are cordially invited to attend the APT US & C annual conference to receive your award. Plaques are presented by the President of the Association and the Chairperson of the committee. This year, the 54th Annual Conference will be in Oklahoma City, Oklahoma from July 14th through July 17th, 2019. We hope you will be able to attend. If not, we will get your plaque to you after the conference. Once again, Congratulations on creating an excellent investment policy and attaining this award. Sincerely, Roger Wisecup, CPA, CPFA, ACPFIM Investment Policy Certification Committee Chairperson 55B-63 55B-64 EXHIBIT 4 CALIFORNIA MUNICIPAL TREASURERS ASSOCIATION Serving California Since 19S9 September 11, 2018 City of Santa Ana C/o Rosie Perez 20 Civic Center Plaza Santa Ana, CA 92701 Dear Rosie, Congratulations on your successful completion of the California Municipal Treasurers Association's Investment Policy Certification program. Your Policy was reviewed by a team of three reviewers from the Investment Policy Certification committee. The Policy received a passing score of 85 or higher based on CMTA's criteria for Investment Policies. The certificate is enclosed and on behalf of the California Municipal Treasurers Association, I wish to personally thank you for supporting CMTA. Don't forget next year's CMTA conference will be held at the Sheraton San Diego Hotel & Marina on April 17-19, 2019. 1 am personally looking forward to seeing you there. Sincerely, X�L"'K Shaun L. Farrell Investment -Policy Certification Chairperson ---------- -- -- _— - CMTA 1 700 R Street, Suite 200 1 Sacramento, CA 95811 1 www.cmta.org I Telephone: 916-231-2144 1 Fax: 916-231-2141 55B-65 FOR IMMEDIATE RELEASE Date: September 6, 2018 News Release For more information contact: Shaun L. Farrell, Chairperson CMTA Investment Policy Certification Phone: 209-712-0428 Email: sfarrell@ci.galt.ca.us (Sacramento, California) —The California Municipal Treasurers Association (CMTA) Investment Policy Certification has been granted to the City of Santa Ana. This Investment Policy Certification recognizes that CMTA has validated that the City of Santa Ana's Investment Policy adheres with the State of California Government Code and meets the program requirements within 18 different topics areas deemed to be best practices for investment policies. Those topics include: Scope, Prudence, Objective, Delegation of Authority, Ethics and Conflicts of Interest, Authorized Financial Dealers and Institutions, Authorized and Suitable Investments, Review of Investment Portfolio, Investment Pools/Mutual Funds, Collateralization, Safekeeping and Custody, Diversification, Maximum Maturities, Internal Controls, Performance Standards, Reporting, Investment Policy Adoption and Glossary. Once a policy is received by CMTA, it is independently evaluated using a scoring matrix by three separate CMTA professionals. When the agency receives a passing score, the Investment Policy earns the 'Certified' distinction. To enhance the municipal treasurers role, CMTA has developed a number of certification programs to reflect best practices and increase an individual's knowledge of fixed income instruments. The Investment Policy Certification program began in 2012 with the support from the California Debt and Investment Advisory Commission. It is open to all government agencies within the State of California including special districts, cities and counties. CMTA was founded in 1958 by a handful of Municipal Treasurers from both Northern and Southern California whose primary interest was to improve their function in local Government. CMTA is o professional organization governed by active public officials who are representatives of their own local governmental units. 55B-66 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: JUNE 18, 2019 TITLE: APPROVED ADOPT A RESOLUTION APPROVING THE ❑ As Recommended SANTA ANA ACTIVE TRANSPORTATION ❑ As Amended PLAN ❑ Ordinance on 1� Reading ❑ Ordinance on 2n° Reading (STRATEGIC PLAN NO. 5, 6B) ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER CITY MA AGER RECOMMENDED ACTION Adopt a resolution approving the Santa Ana Active Transportation Plan. DISCUSSION Recognizing that Santa Ana residents need mobility options, the Santa Ana City Council directed staff, through the City's 5-year Strategic Plan, to develop a master plan of bicycle and pedestrian infrastructure to ensure Santa Ana residents have access to safe streets, regardless of their transportation mode. In partnership with the Southern California Association of Governments (SCAG), the City of Santa Ana secured a Transportation Planning grant to develop a Citywide Active Transportation Plan ATP from the State of California Department of Transportation in June 2016. SCAG's role for the project was administrative oversight, including procurement of the consultant team and payment of invoices. The City of Santa Ana Public Works Agency was responsible for coordinating outreach efforts and day-to-day Project Management throughout the development of the ATP. Outreach for this community -based plan began in the fall of 2017 and concluded in the spring of 2019. Outreach efforts included the establishment of an Active Transportation Working Group that met monthly throughout the duration of the project, pop-up booths at community events, door-to- door outreach in high -collision neighborhoods, and six community workshops held throughout the City. These comprehensive efforts identified top priority corridors throughout the City and educational needs. The Santa Ana Active Transportation Plan includes recommendations, conceptual renderings, and cost estimates for those priority corridors, identifies education/encouragement programs and policies to promote and support Active Transportation modes in Santa Ana. City staff will use the final plan to pursue grant funds for the implementation of the proposed projects outlined in the plan. 55C-1 Resolution Approving the Santa Ana Active Transportation Plan June 18, 2019 Page 2 A requirement of the Transportation Plan is projects identified in grant funds received for the a th implementation. An Exec Exhibits 2 and 3. resolution of th e adopted pla utive Summary ENVIRONMENTAL IMPACT City Council i are more and link to vii development of the Santa Ana Active approving the Plan (Exhibit 1). Further, competitive when pursuing grants for :w the entire document are included as There is no environmental impact associated with this action. Individual environmental reviews will be conducted for each recommended improvement at the time of implementation. Those types of projects typically qualify for Categorical Exemptions. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #5 — Community Health, Livability, Engagement & Sustainability, Objective #6 (focus projects and programs on improving the health and wellness of all residents), Strategy B (incorporate the improvement of walking and biking lanes as well as the development of a citywide bike master plan into the Circulation Element of the City's General Plan). FISCAL IMPACT There is no fiscal impact associated with this action. PLS Executive Virector Public Wo s Agency FSS/EWG/TH/CW Exhibits: 1. Resolution 2. Santa Ana Active Transportation Plan - Executive Summary 3. Santa Ana Active Transportation Plan may be reviewed at hftp://www.santa-ana.org/active-transportation 55C-2 EXHIBIT 1 jmf6/3/19 RESOLUTION NO.2019-XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE SANTA ANA ACTIVE TRANSPORTATION PLAN BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. Recognizing that as many as fifty percent or more of Santa Ana residents rely on walking, bicycling, and public transit as their primary means of transportation, the City Council of Santa Ana, through the City's 5-year strategic plan, directed staff to develop a master plan of bicycle and pedestrian infrastructure to ensure that residents have access to safe streets, regardless of their mode of transportation. B. This master plan, known as the "Santa Ana Active Transportation Plan," has been completed with funding from the California Department of Transportation secured in partnership with the Southern California Association of Governments. The plan was developed through extensive outreach to the community beginning in 2017 and concluding in early 2019. C. The Santa Ana Active Transportation Plan includes an inventory of existing bike and pedestrian infrastructure and identifies deficiencies, develops and prioritizes improvements, and strengthens pedestrian and bicycle policies. The plan recognizes the importance of addressing barriers that prevent nonmotorized trips from being safe, especially for the younger and lower -income populations who cannot afford, operate, or choose to forgo vehicle ownership. D. Numerous environmental, health, and economic benefits are attributable to bicycling and walking, especially as substitutes for travel by motor vehicle. In addition to these benefits gained from an enhanced active transportation infrastructure, there is also the potential to alleviate issues for disadvantaged populations that are disproportionally impacted by rising transportation costs. E. In formulating the Santa Ana Active Transportation Plan, numerous planning documents were consulted, including the Santa Ana General Plan, the Santa Ana Strategic Plan, the Safe Mobility Santa Ana Plan, the Downtown Santa Ana Complete Streets Plan, the Central Santa Ana Complete Streets Plan, and the Safe Routes to School Plan. Resolution No. 2019-XXX Page 1 of 3 55C-3 jmf 6/3/19 F. The Santa Ana Active Transportation Plan includes cost estimates for priority projects to enhance the City's active transportation infrastructure, as well as potential funding sources. G. Following approval of the Santa Ana Active Transportation Plan by the City Council, City staff will pursue grant funds for the implementation of these projects. Section 2. The City Council of the City of Santa Ana hereby approves the Santa Ana Active Transportation Plan, a copy of which is attached as Exhibit A and will be on file at the offices of the Public Works Agency of the City for public inspection. Section 3. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting ADOPTED this _ day of APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: W, 7g, -f.L John M. Funk Assistant City Attorney AYES: NOES: ABSTAIN: NOT PRESENT: Councilmembers Councilmembers Councilmembers Councilmembers 2019. Miguel A. Pulido Mayor Resoldon No. 2019-XXX Page 2 of 3 55C-4 jmf 6/3/19 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Norma Mitre, Acting Clerk of the Council, do hereby certify the attached Resolution No. 2019-_ to be the original resolution adopted by the City Council of the City of Santa Ana on 2019. Date: Acting Clerk of the Council City of Santa Ana Resolution No. 2019-)00C Page 3 of 3 55C-5 55C-6 I nana sa a ACTIVE TRANSPORTATION PLAN Final Draft June 2019 Executive Summary 55C-7 Santa Ana Active Transportation Plan 2019 Executive Summary I. Introduction The Santa Ana Active Transportation Plan (ATP) provides recommended actions, projects and programs to support increasing bicycling and walking as well as improve non -motorized travel infrastructure to provide safer, walkable streets throughout the City for residents that are dependent on these modes. This ATP builds upon the projects from previous complete street planning efforts to close the gaps in the City's bicycle and pedestrian network. Incorporated plans include the City's General Plan, Downtown and Central Santa Ana Complete Streets Plans, Safe Mobility Santa Ana and Safe Routes to School Plan. This ATP includes a summary of the community engagement efforts, inventory of existing bike and pedestrian infrastructure, identification of deficiencies, developing and prioritizing improvements, and strengthening active transportation policies. For many residents, walking, bicycling and transit use is their only means of transportation. The population of Santa Ana is relatively young with over 30 percent of the population being under the age of 19, while only 8 percent being classified as seniors (over the age of 65). Median household income is $57,151 with 20 percent of residents reporting incomes below the national poverty level. Of the households surveyed in 2017, most households have access to one or more vehicles, with over six percent reporting lacking access to a vehicle. According to the surveys completed as part of this plan, over 46 percent of respondents said they walk daily and over 8 percent bicycle daily. Sixty-six percent say they drive to school. To access parks, 51 percent walk while 55 percent drive. Numerous environmental, health, and economic benefits are attributable to bicycling and walking, especially as substitutes for travel by motor vehicle. The evolving state of practice in active transportation ranges from enhanced bicycle treatments to programs promoting bicycle, pedestrian, transit use and other mobility options and social equity. This plan provides a summary of these benefits and provides a toolbox that highlights the latest bicycle and pedestrian treatments being implemented today and the legislation that provides guidance. Overview of the Document The Santa Ana Active Transportation Plan is organized by the following chapters: 1. Introduction 2. Existing Conditions & Analysis 3. Goals and Policies and Recommended Programs 4. Recommended Projects 5. Funding Sources II. Existing Conditions Understanding the existing conditions in Santa Ana and the adjacent region is imperative for future planning efforts. The following highlights a few of the existing conditions data that provided the baseline information for analysis and community engagement. Fortunately, the City collects and maintains a robust dataset that expedited data collection and analysis. Over 47 percent of the existing 42 miles of bikeways consists of multi -use paths and most of them are along Maple Street, Flower Street, Bear Street, Alton Avenue, and the Santa Ana River channel. The remaining 53 percent are made of on -street bicycle facilities such as bike lanes, buffered bike lanes and 55C-8 bicycle routes or bicycle boulevards. Santa Ana is one of the first cities in Orange County to implement protected bikeways along Bristol Street. W6pi rJGaM'E . ,. ♦ ALI l I ',�llGIL 41 Nt . s {�1 Ig3 aiil lt^l J it I r, n _ ru❑I' rrn rousn _l t i jr _— — ��U Jh i ill = i yarn v L 1 .1 ¢.t,imy e�kawan . � � r T f�anr �-�r . `'I � �� � �.' � • —Uazs 1. MWULse P.. �DJss IR &1e Raute -. ar � I •-Klass W:C,1T,e —Oas, N: Cycle Tratl[ I Parks OGry BaoWmy Existing Bicycle Facilities Bicycle and pedestrian collision data were obtained from the Statewide Integrated Traffic Records System (SWITRS) collision dataset managed by the California Highway Patrol (CHP), which captures reported bicycle -vehicle, pedestrian -vehicle, and bicycle -pedestrian collisions that resulted in injury or property damage in Santa Ana in the five-year period of 2013 through 2017. In the past five years there were 788 bicycle -related collisions and 767 pedestrian -related collisions, 66 of which resulted in fatalities. The bulk of both collision types resulted in injury or complaint of pain (87 percent), with 13 percent resulting in severe injury or death. Most collisions (69 percent) occurred in daylight conditions or lighted conditions, with 31 percent occurring in either unlighted conditions or at dawn/dusk. Ya 55C-9 wa E.v caove r !Je 7-1 g4 & J rartrau vnu.e- colrsinns i3013.20M / • Pe egt io Coll a Biyde C.IBw I /• Pe ike Rnra, / High Density Lmt Density Mcity soun&lq Bicycle and Pedestrian Collisions (2013-2017) YKnn .m vnw w: u� \ \ / % Ill. Outreach The ATP planning process was conducted in an open, inclusive and transparent manner to ensure that community members of Santa Ana were included throughout the entire course of the project. Community input and involvement were crucial to identify barriers to walking, bicycling, skateboarding and accessing transit. The ATP's outreach plan was tailored to utilize a variety of engagement strategies with a proven track record of effectiveness. This included both traditional strategies, as well as innovative ones designed to engage sectors that may be harder to reach. The four primary community engagement strategies that were utilized for the ATP were: • Community workshops • Active Transportation Working Group (ATWG) • Direct outreach efforts • Multimedia communications These strategies allowed to inform the public about the ATP, actively engaging community members and stakeholders in the process, and providing meaningful input. Project Branding To generate public interest and to create a unique identity, the team branded the project with two logos designed specifically for this project. Santa Ana's built environment and its historic water tower, as well as the multi -modal goals of the ATP, were used as inspiration for the logo and colors. The project's N 55C-10 branding was used in all outreach materials, including flyers, surveys, online map, and workshop exhibits and produced and Spanish and English. Community Workshops A total of six community -wide workshops were conducted throughout the ATP planning process with an average attendance of 50 people. Residents and various stakeholders were engaged in open discussions regarding the community's needs, which assisted in developing the priorities for the recommended active transportation projects. The events took place in key areas of the City where higher collision rates have resulted in pedestrian and cyclist injuries and fatalities, as identified in the Safe Mobility Santa Ana Plan (SMSA). Locations also factored geographic distribution around the City and locations that had easy access for all residents. The workshops were designed to encourage participation and included a series of activities, such as ice breakers, presentations, voting exercises and design charrettes. During the workshops, residents were asked to identify barriers to walking, bicycling, skateboarding and accessing transit in Santa Ana. Subsequently, participants were then asked to provide potential solutions to these issues. The first four workshops were aimed at gathering issues and concerns, and to begin developing ideas on the improvements participants wanted to see. The second group of workshops, the Recommendations Workshops were conducted towards the end of the project where participants can review and comment on the corridors and programs being developed. Workshop were conducted at the following locations: General Input, Issues and Solutions Workshops Workshop #1: Roosevelt Elementary School Workshop #2: Heritage Museum Workshop #3: Delhi Park Workshop #4: Rosita Park Recommendations Workshops Workshop #5: St Peter Church Workshop #6: Memorial Park Active Transportation Working Groups The Active Transportation Working Group (ATWG) was a key component of the Community Outreach and Engagement Plan. Health and traffic safety institutions, non-profit and faith -based partners, and community members and neighborhood association stakeholders 55C-11 were invited to join the ATWG and become advisors and champions for the ATP. The ATWG consisted of 15-18 key stakeholders that included representatives from local public and regional institutions, community residents, and representatives from faith -based organizations and community -based organizations. Participating organizations include: • Health and traffic safety institutions • Non-profit and faith -based organizations • Community members and neighborhood associations • Elected and appointed boards and committee members The ATWG advised and supported the project team throughout the course of the project by providing feedback on several aspects of the project, including community outreach strategies and prioritization methodology. Members played a supporting role in the community outreach strategies by helping finalize the location, dates, agenda, and activities for each community workshop. Additionally, ATWG members conducted outreach within their own networks through personal announcements and social media posts. Direct Outreach Efforts The goal of the direct outreach efforts was to meaningfully and actively engage the community during the development of the ATP. To achieve this, a variety of methods were used to connect with the community, including: • A one-to-one direct outreach plan to inform people about the purpose of the ATP. This was the most intensive and effective method of communication and included group presentations, tabling at key events, pop-up events, and intensive door-to-door outreach. • A multimedia communications strategy plan, to expand even further the reach of the direct outreach. Door-to-door outreach and pop-up events 55C-12 Multi -media Communications Therefore, a comprehensive multimedia communications plan was employed that included social media, printed media, radio, videos, and text messaging. Facebook and Instagram accounts were specifically created for the ATP with the purpose of posting pictures, flyers, and updates. This also allowed the public to follow the process and interact with the project team on an ongoing basis. The "Santa Ana Moves Like This!" project slogan and hashtag was also created to keep the public updated about the planning process and upcoming events. Additionally, LHA's social media accounts were also used to promote the ATP and its events. Survey Results A total of 531 people completed the survey and provided comments. The results were analyzed and used for the development of the potential project list. They also provided the City with a current view of people's opinions, concerns, and desires for pedestrian and bicycle facilities. The following figures depict results from the survey. About 82 percent of respondents walk more than once a week, while only 21 percent of respondents' bike more than once a week. Over 66 percent of respondents drive to work or school and 55 percent of them drive to the park. In addition, when asked what would make walking and biking better in Santa Ana, respondents answered street lighting and bike lanes on the street respectively. These results communicate the importance of improving the walking and biking infrastructure in the City. 65% aikr Lane= Bike Pau`s Away uqh Iq St mLT'm Bike P"inq Same, Tlafirt other the st'"t (rani tlx Stroet S,�_ds III. Key Issues Community input from the outreach events were collected via surveys that were prepared to determine satisfaction levels of current pedestrian and bicycle infrastructure, along with desired improvements. Issues regarding street lighting, lack of bike lanes on the street and safe pedestrian crossings were identified. These results communicate the importance of improving the walking and biking infrastructure in the City. IV. Goals & Policy Summary Through a series of exercises during the community workshops, programs and sample goals and policies were presented to gather feedback. These goals and policies were then refined into the following eleven goals developed for the plan. 55C-13 Goals Goal 1: Develop a comprehensive non -motorized network and infrastructure to provide safe, fun, convenient, healthy, and environmentally- friendly travel throughout the City for all ages and abilities. Goal 2: Design non -motorized infrastructure to allow users of all ages and abilities to access schools, neighborhoods, parks, employment and commercial centers. Goal 3: Maintain non -motorized infrastructure to allow users of all ages and abilities to access schools, neighborhoods, parks, and employment and commercial centers. Goal 4: Develop safety and monitoring programs to encourage non -motorized travel within the City. Goal 5: Develop non -motorized multimodal resources that meet both commuter and recreation needs. Goal 6: Develop programs to increase awareness of active transportation benefits and to encourage residents to use non -motorized modes to school, work, recreation, and shopping. Goal 7: Coordinate City non -motorized improvement plans with interagency transportation plans and funding programs. Goal 8: Promote inclusive and sustainable economic growth by developing non -motorized facilities and improving existing infrastructure in commercial areas. Goal 9: Develop an active transportation network that ensures residents of all ages and abilities have access to safe streetscapes, especially the more vulnerable sectors of our community, such as low- income populations of color, children, and seniors whose primary mode of transportation is walking, biking, skateboarding, and public transportation. Goal 10: Incorporate practices that ensure responsible, equitable, and sustainable active transportation planning and development by evaluating the potential impacts and pro -actively mitigating the negative consequences, such as displacement of residents and businesses. Goal 11: Foster equitable enforcement practices that encourage rather than penalize multi -modal behaviors and prioritize education, particularly among low-income communities who rely solely on active transportation. V. Recommendations & Priority Projects Summary After analyzing the findings obtained from the planning process, which included community and stakeholder input, several short-term and long-term improvements were made. These recommendations are meant to serve as a guide to help the City in allocating funds as they become available through various sources. Chapter 5 addresses the physical recommendations to help improve the non -motorized environment in Santa Ana. The ATP lists almost 100 miles of recommended projects with information such as location, route type, and facility type. Project Prioritization Developing the project prioritization criteria was a combined data -driven and interactive process consisting of cumulative scores derived from the various inputs (criteria). To be consistent with regional efforts in project prioritization, the criteria from OCTA's various bikeway strategies and Active 55C-14 Transportation Plan was presented, then vetted and approved by the Active Transportation Working Group. In addition, the criteria are also consistent with neighboring cities and national best Practices. Criteria included; Bike and Pedestrian Collisions, Public Support, Level of Traffic Stress, CalEnviroscreen, Completes the Network, Completes the Corridor, Economic Efficiency, Bike -Pedestrian Propensity Model. The prioritization process uses a weighted score determined by the Active Transportation Working Group and follow up workshop input. Once the prioritization process was completed, a total of 35 priority projects were selected to go into further design detail. The remaining projects are important nonetheless and can be used for future recommendations. These projects will create a network of complete streets that will improve non - motorized and transit use throughout Santa Ana. Each priority project represents a variety of street types that currently lack safe access and mobility for pedestrians, bicyclists, and other non -motorized modes. The following table is a summary of the top 35 recommended projects. nn L] C 0 os i I t o -o- t -� •6 1ZZ g, Proposed Bikewoya swnuv�4a:Uv )_ �. J� —�nmSLhfW4Use Pc:n // T F r -ST —. Doss aese[anez ( j —� f ��ix�Ll-.r.0,_.�X � •^� � f _il ...noss as. a�nereaex«ous i , L nNt -rTj ^i � ,�.. "I —nns Ht ax.. Roure ' / t _--0- 1•^c•• I MrT —aessrmwuuse ren � -.� � -, � T 1 rf"• O i . �O!r —Crass M. ayde na<i J j .� Q, — D• 1 Htevlaauynoposeealeways �, ! � 1 i Top 35 Projects The following table summarizes all 65 projects in terms of mileage. Recommended Projects Summary Facility Type Miles Class I: Multi -Use Path 9.55 H 55C-15 Class II: Bike Lanes 21.63 Class JIB: Buffered Bike Lanes 5.40 Class III: Bike Route 20.96 rClass IIIB: Bike Blvd 8.05 Class IV: Cycle Track 33.64 Total 99.23 miles ,:aocs:raRorr l._ rxwr,En Reposed Baewan I-1 a�1 4i a11 l.7�AA —Klass L FWIU Use Pam • r.:{'� _ — Class R ede Lams oxr„aw ,rtcr r 1 Tilil �... •� �+pasz neeatteree eae Lscs _ ...�—__� —KlasspLake Rmle �. +, ..Chas: HE ake ere Ir 1 11 M f`5 r aass IV. We Tra4 ' Existing Sikerean — Pnss I MWU USe Pa.} 1 J T 1 1'i Class ll, axe R.I. � I�-- �. .Hasa ma: ake aka / t i I�t 1 t L —CIns N Cyde Track - aaNasaseEMD—I..S rM I. 1 .,,.�- - II -1 a RgwsedbyCaNaeACe f —_ T �,� �Y� Parks Mcf" naary Recommended Bicycle Network Costs: Top 35 Priority Projects: $39,922,000 Other Priority Projects: $15,233,000 Total Priority Projects: $55,155,000 Recommended Programs Due to a long history of routine accommodation for pedestrians (i.e. sidewalks, crosswalks, dedicated signals, etc.), programs targeting walking are relatively uncommon. Conversely, the historic lack of routine accommodation for bicyclists has fostered confusion about the role of bicycles in the overall 9 55C-16 transportation system and has necessitated an impressive diversity and breadth of bicycle -related programs. Despite a common emphasis on projects, bicycle programs remain an important element of a successful active transportation plan. Program recommendations for active transportation planning have traditionally been guided by the "Six Es' approach developed by the League of American Bicyclists. The Six Es represent Engineering, Education, Encouragement, Enforcement, Equity, and Evaluation. This ATP recommends programs that include a complementary menu of initiatives, many of which are multi- faceted, to effectively address the area of concern and provide desired outcomes. The following lists a sample of the programs by their "E." Equity, the sixth "E," should be integrated into each of the other "Es" to provide a comprehensive program that meets the needs of all residents in Santa Ana. Education: Safety Assemblies, Bike Safety Workshops, Pedestrian and Bike Traffic Safety Fairs Engineering: Enhanced bicycle and pedestrian treatments, traffic control signs, curb and high visibility pavement markings, signal timing, parking controls and traffic safety monitoring. Encouragement: National Bike Month, Open Street Events, Walk to School Day, 5K Running/Walking events, walking tours, food and/or female focused bike rides. Enforcement: Educate Police Department Staff Regarding Bicycle and Pedestrian Issues, Designate a Law Enforcement Liaison Responsible for Bicycling and Walking Concerns Evaluation: Active Transportation Advisory Committee, Conduct Regular Bicycle and Pedestrian Counts, Regular Review of Collision Data Funding Sources A funding sources chapter is included in this ATP to provide the City with the resources to continue successfully applying for federal, state, and local government grants. Only a fraction of that funding is used to develop policies, plans, and projects to improve conditions for bicyclists and pedestrians. Even though appropriate funds are available, they are limited and often hard to find. Almost every implemented active transportation or complete street program and infrastructure in the United States has had more than one funding source and it often takes a good deal of coordination to pull the various sources together. FG7 55C-17 55C-18 SANTA ANA ACTIVE TRANSPORTATION PLAN Santa Ana Active Transportation Plan is available here: http://www.santa-ana.orq/active-transportation ACTIVE TRANSPORTATION PLAN EXHIBIT 3 55C-19 55C-20 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JUNE 18, 2019 TITLE: APPROVE APPROPRIATION ADJUSTMENT TO TRANSFER GENERAL FUND BUDGET BETWEEN VARIOUS DEPARTMENTS FOR FISCAL YEAR 2018-19 WITH NO NET FISCAL IMPACT (STRATEGIC PLAN NO. 4, 1, 3) RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on Is' Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Approve the proposed maximum General Fund appropriation adjustment as follows. The actual appropriation adjustment between departments may be less, based upon final fiscal year-end amounts. Department Reason Amount City Manager's Office (CMO) Former City Manager separation payment, and payment of significant accrued leave for two other CMO employees who separated from the City $450,000 Non -Departmental Updated Information Technology Internal Service Allocations $300,000 Clerk of the Council Election Savings $ 250,000 Public Works Agency Staff Vacancy Savings $ 500,000 General Fund Net Impact $0 DISCUSSION Per Section 609 of the Santa Ana Charter, spending cannot exceed the Council -approved appropriations by department within each fund. Specifically, Section 609 of the Santa Ana Charter states that: "From the effective date of the budget, the several amounts stated therein as proposed expenditures shall be and become appropriated to the several offices, agencies, and departments for the respective objects and purposes therein specified as stated in an appropriation ordinance. All appropriations shall lapse at the end of the fiscal year to the extent that they shall not have been expended or lawfully encumbered. 60A-1 Appropriation Adjustment to Transfer General Fund Budget Between Departments June 18, 2019 Page 2 At any meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by the affirmative votes of at least two-thirds (213) of the members so as to authorize the transfer of unused balances appropriated for one purpose to another purpose, or to appropriate available revenue not included in the budget; except that the City Council shall not reduce that portion of the budget providing for the support of public recreation programs below the amount specified in section 607 of this article." Staff monitors the budget to ensure spending does not exceed appropriations. A recent analysis of General Fund expenditures suggests two departments will exceed FY18-19 budgeted appropriations. Staff recommends an appropriation adjustment to ensure budgetary compliance. STRATEGIC PLAN ALIGNMENT The recommended appropriation adjustment assists the City with meeting Goal #4, Objectives 1, and 3 — Maintain a stable, efficient and transparent financial environment; and maintain a structurally balanced budget with appropriate reserve levels. FISCAL IMPACT There is no net fiscal impact to the General Fund. The proposal would adjust the following accounting units by amounts up to the maximums listed. Department/Division Accounting Unit -Account Maximum Amount City Manager's Office 01103010-61000 $450,000 Non -Departmental 01105015-65050 $300,000 Clerk of the Council 01107031-62300 $ 250,000 Public Works A enc /Traffic & Transportation 01117620-61000 $ 200,000 Public Works Agency/Sanitation 01117643-61000 $ 300,000 General Fund Net Fiscal Impact $0 APPROVED AS TO FUNDS AND ACCOUNTS: Kathryn Downs, CPA Executive Director Finance and Management Services Agency 60A-2 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JUNE 18, 2018 TITLE: APPROVE THE THIRD AMENDMENT TO THE AGREEMENT WITH UNIVERSAL PROTECTION SERVICE, LP DBA ALLIED UNIVERSAL SECURITY SERVICES TO PROVIDE SERVICES AT VARIOUS PARKS & TRAILS AND INCREASE THE AGREEMENT ANNUAL AMOUNT BY $667,047.90, TO BE PAID FROM THE GENERAL FUND ACCOUNT, FOR A TOTAL ANNUAL AMOUNT OF $1,892,262.75 AND TOTAL AGREEMENT AMOUNT OF $8,020,362.25 OR AUTHORIZE A REQUEST FOR PROPOSAL TO PROVIDE SECURITY SERVICES AT VARIOUS PARKS (STRATEGIC PLAN NO. 1, 6) CITY MANAGER RECOMMENDED ACTION m CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 18' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute a third amendment to the agreement with Universal Protection Service Services, LP., dba Allied Universal Security Services to provide services at various City parks and bike trails and increase the agreement annual amount by $667,047.90, to be paid from the General Fund account, for a total annual amount of $1,892,262.75 and total agreement amount of $8,020,362.25, for the remaining period of the three-year term originally beginning June 1, 2017 and expiring May 31, 2020, with two additional, one-year renewal options, subject to non -substantive changes approved by the City Manager and City Attorney. 2. Authorize staff to issue a request for proposal to provide security services at various parks. DISCUSSION At the May 21, 2019 City Council Meeting, the Santa Ana City Council expressed a desire implement security services at five parks in each ward, plus Santiago Creek, dedicated bike trails owned by the City of Santa Ana and additional coverage at Centennial Park until the City is able to o. 1 Agreement Amendment with Allied Universal Security Services OR Issue Request for Proposal June 18, 2019 Page 2 develop a sustainable Park Ranger Program. These services would allow the City to address increasing concerns from residents and neighborhood leaders regarding homeless encampments, trash, graffiti, drug use and related public safety concerns. To provide security guard services at various city parks, there are two proposed options for City Council consideration as follows: Option 1: Amend the City's current agreement with Allied Universal Security Services to provide services at various City parks. On May 16, 2017, City Council entered into an agreement (Exhibit 1) with Allied Universal Security Services for $1,154,532 to provide unarmed security guard services for various City facilities through May 31, 2020 with two additional one-year renewal options. The City Council approved the first amendment on December 19, 2017 to increase the existing agreement contingency amount by $17,255 to provide temporary security services at an additional site. A second amendment was approved by City Council on May 21, 2019 to increase the existing agreement amount by $53,428 to provide security services at the Santa Ana Work Center and to reflect the contractor's name change to Universal Protection Services, LP, dba Allied Universal Security Services. The City locations currently covered by the agreement include: City Hall Santa Ana Regional Transportation Center Ross Annex Corridor to Superblock Santa Ana Police Department Santa Ana Public Library Santa Ana Zoo at Prentice Park OC Courthouse Library Parking Structure Santa Ana Court Yard Santa Ana Senior Center Centennial Park Newhope Branch Library 625 S. Cypress Avenue (Temporary -No Longer Covered) Santa Ana Work Center 801 W. Civic Center Drive Each ward of the City will have one dedicated roving security guard with a vehicle to provide services 365 days a year. The City retains flexibility regarding the specific hours of coverage for each area. Option A increases the agreement $667,047.90 annually to expand the scope of services to include various City parks. Option 2: Direct the City Manager to complete a Request for Proposal (RFP) process with an accelerated timeline to provide security services at various City parks. �. 1 Agreement Amendment with Allied Universal Security Services OR Issue Request for Proposal June 18, 2019 Page 3 Below is an estimated timeline for the RFP process: Estimated Timeline June 19 Prepare and post RFP documents to PlanetBids.com website June 20 RFP available to public July 8 RFP due July 9- 12 Evaluation period July 16 City Council consideration August 1 Begin implementation of new service STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #1 — Community Safety, Objective #6 (Enhance Public Safety integration, communications and community outreach). FISCAL IMPACT If Option 1 is approved, funds will be budgeted and made available in the following account for the specified years: Fiscal Accounting Fund Accounting Unit, Account Amount Year Unit -Account # Description Description FY 19-20 01113250- General Fund PRCSA-Park Facilities, $667,047.90 62320 Maint. & Repair Bldg. & Ground FY 20-21 01113250- General Fund PRCSA-Park Facilities, $667,047.90 62320 Maint. & Re air Bldg. & Ground FY 21-22 01113250- General Fund PRCSA-Park Facilities $667,047.90 62320 Maint. & Repair Bldg. & Ground Total $2,001,143.70 If Option 2 is approved, the fiscal impact will be based on the recommended proposal. Proposals will be presented to the City Council for consideration on July 16, 2019. Agreement Amendment with Allied Universal Security Services OR Issue Request for Proposal June 18, 2019 Page 4 e Li a udloff Executive Director Parks, Recreation and Community Services Agency APPROVED AS TO FUNDS AND ACCOUNT: Kathryn Downs, CPA Executive Director Finance and Management Services Agency Exhibit: 1. Third Agreement Amendment Allied Universal Security Services THIRD AMENDMENT TO AGREEMENT TO PROVIDE SECURITY GUARD SERVICES THIS THIRD AMENDMENT TO AGREEMENT is made and entered into this 18th day of June, 2019, by and between Universal Protection Service, LP, dba Allied Universal Security Services, a California limited partnership ("Contractor'), and the City of Santa Ana, a charter city and municipal corporation, organized and existing under the Constitution and laws of the State of California ("City"). RECITALS A. The City and Contractor entered into an Agreement to Provide Security Guard Services, No. A-2017-130, dated May 16, 2017, for Contractor to provide unarmed security guard services for various City facilities ("Agreement"). B. Thereafter, the City and Contractor entered into a First Amendment to Agreement to Provide Security Guard Services with U.S. Security Associates, No. A-2017- 351, to provide additional funding to the contingency amount to provide for additional temporary services under said Agreement. C. On May 21, 2019, the parties entered into a Second Amendment to the Agreement to provide security guard services to the City's Work Center and to increase the compensation set forth in the Agreement to cover these additional services. The parties also amended said Agreement to reflect the change of Contractor's name from U.S. Security Associates to Universal Protection Service, LP, dba Allied Universal Security Services, after Allied Universal Security Associates purchased and merged with U.S. Security Associates. D. In accordance with the terms and conditions of said Agreement, the Parties wish to amend said Agreement to expand the scope of services to include roving patrols for designated City Parks, bike trails and portions of Santiago Creek and increase the total compensation of said Agreement to pay for these additional services. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions of said Agreement, except as herein modified, the parties agree as follows: Section I, SCOPE OF SERVICES, shall be amended to add roving patrols by Contractor of five (5) designated City Parks in each Ward of the City for a total of thirty (30) Parks, city owned bike trails, and portions of Santiago Creek pursuant to the scope of work set forth in the attached Exhibit A -I which will supplement the existing scope of services for the Agreement set forth in Exhibit A to the original Agreement as amended. Page I oft 2. Section 2, COMPENSATION, subsection (a), shall be. amended to increase the compensation by an additional $667,047.90 per year, to cover the additional services at the designated City Parks as set forth in this Third Amendment through May 31, 2020, with two additional, one-year renewal options. The total annual sum to be expended under said Agreement shall not exceed $1,892,262.75 during the term of said Agreement. A revised and updated version of Contractor's Pricing Proposal is attached herewith as Exhibit B-I and incorporated herein by reference, which shall supplement Exhibit C to the original Agreement. 3. Except as hereinabove modified, all terms and conditions of said Agreement as amended shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Third Amendment to Agreement the date and year first above written. CITY OF SANTA ANA ATTEST: NORMA MITRE Acting Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney By: j 1 nz �. VIVALl Laura A. Rossini Senior Assistant City Attorney RECOMMENDED FOR APPROVAL: LISA D. RUDLOFF Executive Director Parks, Recreation and Community Services Agency KRISTINE RIDGE City Manager ALLIED UNIVERSAL SECURITY SERVICES: STEVE NSAIF General Manager Page 2 of 2 �. 1 EXHIBIT A-1 Santa Ana City Parks Roving Patrol Scope of Services �. 1 Exhibit A-1 City of Santa Ana Scope of Work Unarmed Security Guard Patrol Various City Parks, Bike Trails and Santiago Creek A. Patrol Schedules 1. On a daily basis, Contractor will assign Patrol Guards to the designated City of Santa Ana parks and/or facilities per the approved schedule. The patrol will be seven days per week with a staggered schedule. Contractor will submit schedules on a monthly basis no later than five working days before start of month. 2. City reserves the right to adjust service times and quantity of assigned Patrol Guards on holidays and/or any days otherwise specifically requested. B. Patrol Locations 1. The City reserves the right to change the location of the patrol to another city park and/or facility if warranted at that location. Ward 1 • Cabrillo Park 1620 E Fruit Street • Delhi Park 2314 S Halladay • Lillie King Park 500 W Alton Avenue • Madison Park 1528 S Standard Avenue • Sandpointe Park 3700 S. Birch Avenue i • Pacific Electric Bike Trail Maple Street and Walnut to Alton and Bristol Street • Flower Bike Trail (a) Flower & Warner (b) Flower/Sunflower (c) Flower & RR Ward 2 • Birch Park (Security Guard Patrol in addition to original agreement) 210 N. Birch Street Chena's Park 1009 N. Custer Street • French Park 901 N. French Street Memorial Park 2102 S. Flower Street Pacific Electric Park 401 E. McFadden Avenue Pacific Electric Bike Trail (a) Maple & Chestnut (b) Maple & McFadden Ward 3 • Cesar Chavez Campesino Park 3311 Fifth Street Edna Park 2140 W. Edna Drive Portola Park 1700 E. Santa Clara Avenue • Riverview Park 1817 W. 215' Street z • Santiago Park 2535 N. Main Street • Santiago Bike Trail Runs the length of Santiago Park from east side/city limit to west/Broadway (Exhibit 1 — Santiago Bike Trail Map) • Santiago Creek City owned areas of the creek (Exhibit 2 — Santiago Creek Patrol Areas Map) Ward 4 • Bomo Koral Park 900 W. MacArthur Blvd. • Segerstrom Triangle Park 1000 W. Hemlock Way • Carl Thornton Park 1801 W. Segerstrom Avenue • Pacific Electric Bike Trail (a) Flower Street & Railroad (b) Bristol & Alton • Bear Street Bike Trail (a) Segerstrom Avenue (b) MacArthur Blvd. • Greenville Street Bike Trail (a) North of Hall Avenue (b) Segerstrom Avenue • Raitt Street Bike Trail (a) Segerstrom Avenue (b) Alton Avenue Ward 5 • Angles Park 914 W. Third Street • El Salvador Park 1825 W. Civic Center Drive • Friendship Park 2210 W. Myrtle Street 3 II1 • Willard Park Corner of 15'h Street and Parton • Nelson K. Sasscer Park 502. W. Santa Ana Blvd. Ward 6 • Adams Park 2302 S. Raitt Street • Centennial Park (Security Guard Patrol in addition to original agreement) 3000 W. Edinger Avenue • Heritage Park 4812 W. Camille • Santa Anita Park 300 S. Figueroa Street • Windsor Park 2915 W. La Verne Avenue • MacArthur Blvd. Bike Trail (a) Santa Ana River Trail (b) MacArthur Blvd C. Patrol Guard Duties 1. Patrol Guards shall arrive at assigned park and/orfacility in a vehicle provided by Contractor and will be on foot patrol at all times and clearly visible to patrons, unless specifically requested by the City to patrol a park using a vehicle. 2. Patrol Guards shall be able to communicate in English and Spanish. 3. Assigned Patrol Guards will check in with designated city staff at the beginning of each shift. 4. Assigned Patrol Guard shall act as an ambassador to educate park visitors on park rules, regulations, existence of overt cameras in specific parks and request compliance. 4 60B-11 5. Patrol Guards shall monitor parks use for compliance with all posted rules and ordinances, requesting visitors to comply. Patrol Guards shall inspect park restrooms; walk through community centers, pool areas, playground areas, parking lots, sport field areas, tennis court facilities, basketball and volleyball courts, skate parks, bike trails, archery range, nature center, clubhouses, and any other amenities within assigned areas. In the event there continues to be lack of compliance, Patrol Guards shall contact the Santa Ana Police Department to address situations they are unable to handle. 6. Patrol Guards shall not have the ability to issue citations on behalf of the City of Santa Ana. 7. The expectation of Patrol Guards is to patrol continually to deter vandalism, theft, illegal activities, and noise ordinance violations, parking violations, non -approved use of park, break-ins to site facilities, and loitering in the park after closed. 8. Patrol Guards shall use My Santa Ana app for any maintenance related concerns (i.e. graffiti removal) and/or note items on the daily log. 9. Patrol Guards shall lock and/or unlock designated parking lot gates and restrooms daily during their shifts. 10.Assigned Patrol Guards shall immediately restrict access and report any health and/or safety issues immediately to the designated city contact via email no later than 8:00 am the following morning. D. Patrol Guard Vehicles 1. Contractor shall provide vehicles used by Patrol Guards. Contractors should not transport any residents in their vehicles while performing services pursuant to this Agreement. 3. Contractors shall obey all traffic laws while using their vehicles to provide services pursuant to this Agreement. E. Post Orders and Operating Procedures 1. Pursuant to the original Agreement between the parties (Exhibit A, paragraph 9 entitled 'Post Orders (Duties) and Operating Procedures) the Contractor will work with Parks, Recreation and Community Services Agency staff to establish a 60B-12 specific set if post orders and operating procedures for the roving park patrols outlined in this Third Amendment. Attachments: Exhibit 1 — Santiago Bike Trail Map Exhibit 2 — Santiago Creek Patrol Areas Map 60B-13 EXHIBIT 1 �. 1 T10/y O A4 ( �tr ® G DEN GROVE Bl- A� � 22 w rn TflASK AV. 17IH ST. TON AV. MVffIESC i I I CHESTNUTAV. i • m i yy ., Q MOHfAASIAM q m � < PSr• Y c� s F MCFADDEN AV. Q V. �• � � o MCFADDEN AV. • UYtlWFA. • EDINGER AV. O rn tt Q G Si V w 1 LOL m ST. ANDREW L. Q o 0. srGWfWIO s a Z LJ ( WARNER AV. SEGERSTROM G i UIVnJlf AV. _ 9 Q � SUNFLOWER AV. N 0112019 SANTA ANA BIKE TRAILS 11111 BIKE TRAIL(City-owned)Ia:E BIKE TRAIL(Countyowned) CLASS 1: "Off road"trail ....J PARK 1. Santa Ana River BikeTrall 5. Flower St Bike Trail B. MacArthur Blvd. Bike Trail Class I, along Santa Ana River bed. Class I, along Orange County Flood Control Class I, along active Railroad. Channel. 2. Greenville SLBlkeTrail 9. Santiago Creek BikeTrall Class 6. Pacific Electric BikeTrall Paved Class 1, trail connects MainPlace to Landscaped, Class I, follows former Pacific Santiago Park 3. Rant St BikeTrall Electric Railroad. Class I, along Orange County Flood Union Pacific BikeTrai 10, F02 Flood Control Channel BikeTrail 4. Bear St Blkelrrall 7. Alton Ave. Bike Trail Landscaped, Class I, along railroad Class I, along active Railroad. right of way.Control Channel. Exhibit 1 EXHIBIT 2 s x -= �yEi?1[a:lXb n f wla�ie,i� • .h a + 1C,. - ¢ ,may .. t MAP LEGENDx': Santiago Creek Bike Trail 31 Santago Creek Trail Decomposed granite ^^- logging/hiking trail Pi, i ;' •� . R ; ti ` `r! � t s= ,v R a' .J .y'y/lrr r r 1w -in I >� ^ 4 AW aM . - s I a "r "�f s' � . �.r r f F6 'i i& �Y +la:3i�1 �'LY .t•.'&'9 f 1 1 •Y— �'� .M I Lf r iito 1II ON a a. "� • l 1:1 yG i rr k*} . e (aV ssxi�h k. �rz• •�1a• # I xt,Yis �(' ♦ +ILI c6"IJ1d111JJJllI 1111 I i - ! C o IIJJ N N Exhibit 2 °�^}� �Willtl;lldil ll��i��9 4=v+'T.�t s. �®��rc: dam �:• ��. t 60B-17 EXHIBIT B-1 Contractor's Pricing Proposal City of Santa Ana 20 Civic Center Plaza 1. REQUIREMENT: Provide unarmed, uniformed professional security officers who are capable of exercising good judgment, will be highly visible at all times, deter crime, and perform other duties as outlined by the client. 2. SCHEDULE: 3. BUDGET ESTIMATE: MEN Securit Officer 336 $26.16 $39.24 $38,557.75 $462,692.97 Supervisor 56 $29.43 $44.15 $7,229,58 $86,754.93 Sub Total Labor 1 392 1 $ 45,787.32 $549.447.90 Grand Total (incl. Equipment) 1 $ 55,587.32 $667,047.90 Notes: a) Extracoverage and specials are billed at an agreed upon hourly rate not to be less than the holidaylO.T, rate. b) Alhed Universal may bill any costs incurred as a result of change in federal state or local legisllation or taxes. 4. EQUIPMENT: Patrol Sedan S 1,400.00 7 59,800.00 S117,600.00 PEHeliaus (Buitty in rate) $ - 7 $0.00 $0.00 $9,800.00 $117,600.00 5. HOLIDAYS: Allied Universal recognizes the following holidays. Security officers working on these days will be paid time and one-half. Client will be billed at the overtime rate/holiday rate for those days. New Years Day President's Day Memorial Day Independence Day Labor Day Thanksgiving Day Christmas Day Client Approval Name: Signature: Title: Date: �.ALL-IEDUNIVERSAC There for you. ALLIED UNIVERSAL SECURITY SERVICES o. 1�l REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JUNE 18, 2019 TITLE: APPOINT CITY COUNCILMEMBER TO THE ORANGE COUNTY HOUSING FINANCE TRUST (STRATEGIC PLAN NO. 5, 3C) 1-01 C MANAGER CITY MANAGi CER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1a Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Appoint City Councilmember to the Orange County Housing Finance Trust. DISCUSSION On June 4, 2019, City Council adopted a resolution authorizing the City's participation in the Orange County Housing Finance Trust. City Council also authorized the City Manager and the Clerk of the Council to execute the Joint Powers Agreement which implements the Orange County Housing Finance Trust. The Joint Powers Agreement (JPA) sets forth the Governing Board as follows: Four representatives from the County of Orange, all elected officials (including two members of the Board of Supervisors) to be placed on the Trust Governing Board by the Orange County Board of Supervisors. The members appointed by the Board of Supervisors are Supervisor Andrew Do, Supervisor Doug Chaffee, Sheriff Don Barnes and Treasurer -Tax Collector Shari Freidenrich. • Five representatives from cities, as follows: ■ One City Councilmember for the city member with the greatest population in the North Service Planning Area (SPA): City of Anaheim • One City Councilmember for the city member with the greatest population in the Central SPA: City of Santa Ana ■ One City Councilmember for the city member with the greatest population in the South SPA: City of Mission Viejo, but changes if the City of Irvine joins ■ One City Councilmember representing cities of 60,000 in population or more: John Mark Jennings, City of Laguna Niguel ■ One City Councilmember representing cities of less than 60,000 in population: Jamey Federico, City of Dana Point 65A-1 Appoint City Councilmember to the Orange County Housing Finance Trust June 18, 2019 Page 2 For the Governing Board, the City Council must appoint one of its members to represent the City of Santa Ana on the newly formed Governing Board. The first meeting of the Governing Board will be on June 27, 2019 from 9:30AM to 11:30AM. The current draft of the bylaws, subject to approval by the Governing Board, states, "Regular meetings of OCHFT's Board shall be held once every two (2) months, unless otherwise called by the Chair." STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal # 5 - Community Health, Livability, Engagement & Sustainability, Objective # 3 (Facilitate diverse housing opportunities and support efforts to preserve and improve the livability of Santa Ana neighborhoods), Strategy C (Provide that Santa Ana residents, employees, artists and veterans receive priority for affordable housing created under the City's Housing Opportunity Ordinance or with City funding to the extent allowed under state law). FISCAL IMPACT There is no fiscal impact associated with this item. Steven A. Mendoza Executive Director Community Development Agency 65A-2 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JUNE 18, 2019 TITLE: PUBLIC HEARING TO CONSIDER ORDINANCE NO. NS-XXXX TO ADOPT THE FISCAL YEAR 2019-20 BUDGET AND RESOLUTION NO. 2019-XXX TO APPROVE CHANGES TO THE CITY'S BASIC CLASSIFICATION AND COMPENSATION PLAN (STRATEGIC PLAN NO.4,1,2,3) CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1$1 Reading ❑ Ordinance on 2n° Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER 1. Approve the introduction and first reading of Ordinance No. NS-XXXX (Exhibit 1) to adopt the budget for Fiscal Year 2019-20 (FY19-20), which begins on July 1, 2019 and ends on June 30, 2020, 2. Adopt Resolution No. 2019-XXX (Exhibit 3), to effect certain changes to the City's basic classification and compensation plan, such as changes to classification titles and addition of new classifications. 3. Adopt the Seven -Year Capital Improvement Program (CIP, Exhibit 4) beginning fiscal year 2019-20 through fiscal year 2025-26 per the Orange County Transportation Authority (OCTA) Measure M2 eligibility requirement. DISCUSSION The City Manager is proposing a balanced budget for City Council consideration. The overall citywide proposed budget is $646 million, including $316 million in the General Fund. Proposed Ordinance No. NS-XXXX would establish FY19-20 expenditure appropriations for all funds of the City. If the City Council approves the recommended action, the Ordinance will return to City Council on July 2 for the second reading and adoption. The Ordinance would go into effect 30 days after adoption, or August 1, 2019. Charter Section 607 requires the City Council to adopt a budget by July 31. In the absence of an adopted budget, Charter Section 607 provides authorization for departments to expend each calendar month amounts equal to the preceding June. 75A-1 Public Hearing for the Proposed FYI 9-20 Budget June 18, 2019 Page 2 A summary of 2019 budget meetings follows: 1. Five Community Budget Meetings held throughout the City in March. 2. Budget presentation to Economic Development Infrastructure Budget Technology (EDIBT) Committee of City Council Members on May 13. 3. May 21 Budget Work Session with the City Council. 4. City Manager's proposed budget submitted to City Council on June 4, in compliance with Santa Ana Charter Section 605. 5. EDIBT Committee budget discussion on June 10. Just a few highlights of enhancements included in the proposed general fund budget to specifically address concerns expressed throughout the budget development process, include: • Programming of $4.6 million for additional staffing with a focus on Parks, Libraries, Citywide maintenance, Police, and Code Enforcement. • Programming of $2.5 million to address deferred maintenance and repairs needed in park amenities. • Addition of $2 million towards police overtime to increase level of service in all areas while aggressively pursuing the filling of all vacancies. Based upon individual comments from City Council Members, the City Manager has made additional modifications to the proposed general fund budget, as follows: • Allocated $667,048 for a Park Security contract, with no net increase to the proposed budget. • Allocated $300,000 to plan for and begin establishment of a Justice Center, with no net increase to the proposed budget. • Downgraded a proposed Deputy Chief to a Lieutenant for managing the Jail. • Segregated $423,030 to identify Police Department resources allocated to Vice/Narcotics. • Added two more Code Enforcement Officers to the proposed budget ($282,800 in the General Fund), resulting in a total addition of four new Code Enforcement Officers for FYI 9-20. • Added one more Librarian to the proposed budget ($97,400 in the General Fund), resulting in a total addition of two new Librarians for FYI 9-20. • Added three Code Blue cameras, one at each of three parks (Rosita, El Salvador, and Santa Anita), for a total cost of $75,000. • Increased proposed funding for the City's 150th Anniversary from $150,000 to $175,000. Modifications to other funds' proposed budgets consist of the following: • Federal Urban Areas Security Initiative (UASI) $1.8 million. • SCAG Bike & Pedestrian Education Campaign $28,480. • Additional lease revenue and contract expenditures for the Santa Ana Regional Transit Center (SARTC). 75A-2 Public Hearing for the Proposed FY19-20 Budget June 18, 2019 Page 3 • Capital Improvement Project for addition of two clay tennis courts with an estimated cost of $500,000 from carryovers. While not impacting proposed budget amounts, staff expects to plan, evaluate and offer recommendations during FY19-20 as follows: • Work with the Youth Commission to help program $3.1 million of Cannabis revenue set - aside for Youth Services (e.g. Teen Space, tutoring for all school aged youth, internship program, Catalina youth program, youth book mobile, etc.). • Complete the evaluation of library services and make recommendations for new programs and expanded hours. • Explore our ability to provide mobile Wi-Fi to the City's residents. • Complete the plan that is currently in process for 3-1-1 services/24/7 enhanced City app. • Use proposed FY19-20 resources to improve crime statistics communication, develop a Police dashboard, and aggressively advertise for police recruiting. • Evaluate the Proactive Rental Enforcement Program (PREP), which may result in recommendations to expand services with increased fees. • Offer recommendations for the use of unspent FY18-19 General Fund revenue after results are final. • Evaluate deployment of resources to Police Substations. • Communicate a "Your Measure X Dollars at Work" message on the City's website and signage throughout the City, as appropriate. Summary Information and Compliance with Policies A Fund Summary showing the estimated beginning fund balance, estimated revenues, proposed expenditure appropriations, recommended inter -fund transfers, and estimated ending fund balance for all funds of the City is included in Exhibit 2, which is the updated version of the detailed proposed budget. To maintain a sustainable budget in future years, the City Council may carefully review service levels and actively pursue new or enhanced revenues. The General Fund is the primary operating fund of the City, and accounts for unrestricted revenue. A summary of the proposed General Fund budget and a calculation of the City Council's reserve policy follows. 75A-3 Public Hearing for the Proposed FY19-20 Budget June 18, 2019 Page 4 Beginning Unassigned Fund Balance Revenue Inter -Fund Transfers In Expenditures Inter -Fund Transfers Out Estimated Net Activity FY18-19 FY19-20 Expected Proposed 56,363,889 $ 57,769,992 263,542,039 316,678,040 250,000 - (250,079,352) (295,570,240) (12,306,584) (20,297,440) 1,406,103 810,360 Estimated Ending Unassigned Fund Balanc $ 57,769,992 $ 58,580,352 Minimum Reserve Requirements: Operating Reserve (16.67%) Economic Uncertainty Reserve (1%) Total Minimum Requirement 43,932,458 52,790,229 2,635,420 3,166,780 46,567,878 55,957,010 Excess/(Deficiency) $ 11,202,114 $ 2,623,342 FY19-20 Transfers Out include $6,153,300 to Cannabis Public Benefit Fund, $1,179,400 to Civic Center Maintenance Fund, $2,494,500 to Strategic Plan Fund, $600, 000 for General Plan and $9, 870, 240 for Debt Service. In addition to the minimum reserve requirements, the City Council's Budget and Financial Policies (adopted June 6, 2017) defines a balanced budget as "ongoing recurring operating revenues matching ongoing recurring operating expenditures including debt service." A summary of proposed FY19-20 recurring and non -recurring General Fund revenue and expenditures follows. Revenue Expenditures &Transfers Out Recurring One -Time 316,678,040 $ - 309,202,580 $ 6,665,100 Santa Ana Charter Section 607 requires the City Council to adopt a budget to "provide for the support of public recreation programs at least the equivalent of six cents (6) on each one hundred dollars ($100) of the assessed value of taxable property in the City on the legal assessment date for the previous fiscal year." The net taxable value of property in the City for FY18-19 was $26,497,864,876. If we apply the calculation required by the Charter, the required budget for public recreation programs is $15,898,719. The proposed General Fund budget includes $21,346,910 for the Parks, Recreation & Community Services Agency; $5,414,880 for Library Services; and $3,076,650 for Youth Services funded by Cannabis revenue. 75A-4 Public Hearing for the Proposed FYI 9-20 Budget June 18, 2019 Page 5 Workforce Changes Resolution The workforce changes Resolution proposed with this report addresses approval of classification title changes and new classifications. The appropriate bargaining groups have tentatively agreed to the proposed changes to job classifications. Capital Improvement Program (CIP) Staff requests the City Council adopt the seven-year CIP (Exhibit 4), as required by the OCTA Measure M2 eligibility requirement. The CIP document includes details of the proposed $59.1 million capital budget for FYI 9-20, proposed projects by ward, and a schedule of projects through FY25-26 for a grand total of $140.2 million of projects over seven years. STRATEGIC PLAN ALIGNMENT This public hearing assists the City with meeting Goal #4, Objectives 1, 2, and 3 — Maintain a stable, efficient and transparent financial environment; provide a reliable five-year financial forecast that ensures financial stability in accordance with the strategic plan; and maintain a structurally balanced budget with appropriate reserve levels. FISCAL IMPACT The updated Budget Book (Exhibit 2) includes the estimated fiscal impact for each fund on pages A-5 to A-7. Kathryn Downs, CPA Executive Director Finance and Management Services Agency Exhibits: 1. Proposed Ordinance No. NS-XXXX 2. Detailed City Budget Book Exhibit 2 is available at https://www.santa-ana.org/finance/budget 3. Personnel Resolution No. 2019-XXX 4. Capital Improvement Plan (CIP) Book — Fiscal Year 2019-20 Exhibit 4 is available at https://www.santa-ana.org/finance/budget 75A-5 75A-6 EXHIBIT 1 LS 6.18.19 ORDINANCE NO. NS-XXXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROPRIATING MONIES TO THE SEVERAL OFFICES, AGENCIES, AND DEPARTMENTS OF THE CITY FOR FISCAL YEAR BUDGET PERIOD COMMENCING JULY 1, 2019 THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines, and declares as follows: A. The City Manager has prepared and submitted to the City Council, pursuant to Section 605 of the City Charter, a proposed budget for expenditures for the fiscal year commencing July 1, 2019. B. In accordance with Section 606 of the City Charter, a public hearing has been held upon the proposed budget of expenditures after notice of such public hearing had been published in the manner prescribed in Section 606 of the City Charter. C. The proposed budget of expenditures duly submitted and considered as herein stated, together with any supplemental revisions and amendments thereto, was approved, adopted, and fixed by the City Council as the budget of the City for fiscal year 2019-2020, commencing July 1, 2019, in the amounts and for the funds, purposes, functions, department activities, and programs as therein set forth, including the Seven -Year Capital Improvement Program Plan update per Orange County Transportation Authority Measure M2 eligibility requirement. The adopted budget, including any supplemental revisions and amendments, together with a copy of the appropriation ordinance, shall be placed in the official files of the Clerk of the Council. Section 2. There are hereby appropriated to the several offices, agencies, and departments of the City, being the respective object and purposes specified in that certain document entitled " Fiscal Year 2019-2020 City Budget", a copy of which is on file in the Office of the Clerk of the Council, out of the various funds of the City for fiscal year 2019-2020, the several amounts stated as proposed expenditures from such funds, respectively, in those columns of the Budget that are headed "FY 19-20". Each aggregate of expenditures so specified in the Budget for the fiscal year for each program shall be deemed to be an appropriation for a single object and purpose within the meaning of Section 609 of the City Charter, except that as to any office, department, Ordinance No. NS- Page 1 of 3 75A-7 or agency of the City for which more than one program is designated in Section 2 (General Fund Operating Budget) of the Budget, the aggregate expenditure authorized for all programs in Section 2 of each such office, department, or agency shall be deemed to be an appropriation for a single object and purpose within the meaning of Section 609 of the City Charter. Section 3. The appropriations hereby made shall constitute the maximum expenditures authorized for the several offices, agencies, and departments opposite which the amounts of such appropriations are shown in the Budget, and as set forth in Exhibit 1 attached hereto and incorporated herein by reference. Section 4. No warrant shall be issued or indebtedness incurred for any purpose that exceeds the unexpended balance of the appropriations established by this ordinance, unless such appropriation shall have been amended or supplemented by the City Council in the manner set forth in Section 609 of the City Charter. The City Manager is hereby authorized to make revisions between the items included within any such appropriation if, in his/her opinion, such revisions are necessary and proper. Section 5. In accordance with Governmental Accounting Standards Board Statement 54, the City Manager or his/her designee is hereby authorized, as of the date of this ordinance, to allocate assigned governmental funds' balances to specific programs and activities as deemed necessary and proper. Section 6. The Executive Director of Finance and Management Services is hereby authorized to transfer monies in accordance with the Inter -fund Transfers listed in the Budget, in such amounts and at such times during the fiscal year as he/she may determine necessary to the competent operation and control of City business, except that no such transfer shall be made in contravention of State law or City ordinance or exceed in total the amount stated herein or as amended by the City Council. Section 7. One certified copy of this appropriation ordinance together with a certified copy of each amendment thereto shall be transmitted by the Clerk of the Council to the Executive Director of Finance and Management Services. Section 8. The City Council of the City of Santa Ana hereby adopts the updated Seven -Year Capital Improvement Program, as set forth in the 2019-2020 City Budget. Section 9. Upon and from the effective date of this ordinance, expenditures of monies appropriated hereby are authorized beginning July 1, 2019. Section 10. The Clerk of the Council shall cause the title of this ordinance to be published as required by law. Section 11. All presently applicable documentation pertaining to the number, titles, qualifications, powers, duties, or compensation of officers or employees of the Ordinance No. NS- Page 2 of 3 75A-8 City, which has been previously approved by resolution or order of the City Council and which is currently on file with the Executive Director of Human Resources, is incorporated herein and is hereby approved. The City Manager is authorized to create, alter, or abolish any position of employment, or the number, title, qualifications, powers, duties, or compensation thereof, when such action is appropriate to promote the efficiency of the City administrative organization; provided, however, that no such action shall be effective unless and until approved by resolution or order of the City Council. ADOPTED this 18th day of June, 2019. Miguel A. Pulido Mayor APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney r By: Ci c�Ci Lisa Storck Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, NORMA MITRE, Acting Clerk of the Council do hereby attest to and certify the attached Ordinance No. NS- to be the original ordinance adopted by the City Council of the City of Santa Ana on , 2019, and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date Acting Clerk of the Council City of Santa Ana Ordinance No. NS- Page 3 of 3 75A-9 City Manager's Office Legislative Non -Departmental Unfunded Pension Liability Payment Transfers for Debt Payment Transfers to Projects Clerk of the Council City Attorney's Office Human Resources Finance Library Bowers Museum Parks & Recreation Police Fire Planning & Building Public Works Total General Fund EXHIBIT 1 GENERALFUND 2,181,270 502,170 4,794,540 37,142,340 9,042,580 10,119,200 1,682,560 3,219,780 2,490,360 9,671,190 5,414,880 1,473,430 21,421,910 131,568,820 45,640,920 13,227,380 13,155,830 75A-10 EXHIBIT 1 Fund 012 - Cannabis Public Benefit (City Attorney) Fund 012 - Cannabis Public Benefit (Finance) Fund 012 - Cannabis Public Benefit (PRCSA) Fund 012 - Cannabis Public Benefit (Police) Fund 012 - Cannabis Public Benefit (PBA) Fund 012 - Cannabis Public Benefit (CMO) Fund 016 - CASp Certification Fund 021- CAN Capital Support (PEG) Fund 022 - Library Fee and Donation Fund 022- PRCSA Fee and Donation Fund 050 - Council Special Projects (Non -Departmental) Fund 050 - Council Special Projects (PBA) Fund 051- Capital Outlay (Non -Departmental) Fund 051- Capital Outlay (PRCSA) Fund 052 - Strategic Plan Projects (HR) Fund 052-Strategic Plan Projects (Finance) Fund 052-Strategic Plan Projects (PRCSA) Fund 052-Strategic Plan Projects (PBA) Fund 052 - Strategic Plan Projects (CDA) Fund 053 - City Services (CAO) Fund 053 - City Services (Police) Fund 053 - City Services (PBA) Fund 120 - Fire Facilities Fund Fund 121-Special Repair/Demolition Set -Aside Funds F9 307,910 255,550 3,076,650 1,297,520 649,850 565,820 85,000 300,000 25,960 78,000 1,665,120 750,000 223,900 3,445,230 250,000 109,500 1,410,000 350,000 375,000 34,800 570,900 2,684,000 800,000 Fund 031-Air Quality Improvement Fund (HR) $ 175,780 Fund 031-Air Quality Improvement Fund (Planning) - 386,970 Fund 031-Air Quality Improvement Fund (PWA) 1,032,600 Fund 122 - Emergency & Health Grants 3,689,400 Fund 123 - Workforce Investment Act 3,448,730 Fund 124 - Orange County SSA Grant 811,100 Fund 125 - Urban Areas Security Initiative Grant 3,322,540 Fund 127 - COPS Hiring Grant 82,600 Fund 128 - Law Enforcement Grant 1,206,400 Fund 130- HOME Program 2,136,100 Fund 135 - Community Development Block Grant 7,772,380 Fund 136 - Housing Authority - Voucher HAP 34,564,900 Fund 137 - Housing Authority - Mainstream 2,000,000 Fund 138 - Housing Authority - MS 5 585,400 Fund 140 - Housing Authority - Voucher ADM 3,346,840 Fund 142 - Neighborhood Stabilization Program 1,350,740 Fund 144- Prison to Employment Program 3,816,970 Fund 145 - Rental Rehabilitation Grant 387,600 Fund 169 - Recreation Grant Fund 211,820 Fund 403 - SCAG Grants 237,240 Total Grant Funds $ 70,566,110 75A-11 EXHIBIT 1 Fund 020 -Traffic Offender Program $ 67,800 Fund 023 - Inmate Welfare Fund 1,193,800 Fund 024 - Police Special Revenue Fund 812,900 Fund 025 - Special Revenue Enterprise Zone 215,000 Fund 026 - Criminal Activities 71,100 Fund 029 - Special Gas Tax 14,639,060 Fund 074 - Civic Center Authority (PRCSA) 5,503,000 Fund 074 - Civic Center Authority (Police) 2,000,000 Fund 133 - Housing Authority Issuer Fee 141,110 Fund 166 - US DOI Asset Forfeiture Fund 1,648,990 Fund 167 - US Treasury Asset Forfeiture 384,200 Fund 417 - Inclusionary Housing 27,895,420 Fund 607 -Santa Ana Financing Authority 1,661,940 Fund 652 - 2003 Tax Allocation Bond Series A 4,700 Fund 654 - 2011 Tax Allocation Bond Series A 6,700 Fund 655 - 2018 A & B Tax Allocation Refunding Bonds 5,596,500 Fund 658 - 2003 Tax Allocation Bond Series B 4,700 Fund 670 - City of Santa Ana Redevelopment Agency 879,780 Fund 671- City of Santa Ana Redevelopment Agency Obligation Retirement (5,485,300) Total Other Restricted Funds $ 57,241,400 Fund 032- Measure M $ 5,560,700 Fund 054- Sewer Capital Recovery Fund 7,350,000 Fund 055- Sewer Connection 5,263,000 Fund 058 - Residential Street Improvements 313,000 Fund 059 -Select Street Construction 5,948,500 Fund 148 - Traffic Safety Management Program 12,459,000 Fund 161-State Capital Grants 1,465,080 Fund 222 - Local Drainage Area 11 388,000 Fund 223 - Local Drainage Area III 100,000 Fund 224- Local Drainage Area IV 250,000 Fund 301- Park Acquisition & Development 196,190 Fund 311- Residential Development District 1 2,684,630 Fund 312 - Residential Development District 2 3,066,800 Fund 313 - Residential Development District 3 1,377,000 Fund 314 - Residential Development District 4 795,660 Fund 400 - Police Building Debt Service Fund 8,000 Fund 404 - City of Santa Ana Lease Financing Debt Service 11,000 Fund 418 - Peebler Caoital Fund q-on:)snn Fund 027 - Parking Operations $ 6,527,720 Fund 056 - Sanitary Sewer Fund 8,504,590 Fund 057 - Federal Clean Water Protection 4,792,510 Fund 060 - Water Enterprise 59,265,480 Fund 066 - Water Utility Capital Construction 17,200,800 Fund 067 -Santa Ana Regional Transportation Center 1,849,020 Fund 068 - Sanitation Fund 7,946,660 Fund 069 - Refuse Collection 21,618,130 Total Enterprise Funds $ 127,704,910 GRAND TOTAL 645,944,870 75A-12 EXHIBIT 2 Fiscal Year 2019-20 City Budget is located https://www.santa-ana.org/finance/budget 75A-13 75A-14 EXHIBIT 3 RESOLUTION NO.2019-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA TO AMEND RESOLUTION NO. 2015-026 TO EFFECT CERTAIN CHANGES TO THE CITY'S BASIC CLASSIFICATION AND COMPENSATION PLAN. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1: The City Council hereby finds, determines and declares as follows: A. Section 1004, Article X of the City Charter of the City of Santa Ana requires the City Manager to prepare, install and maintain a position classification and pay plan subject to civil service rules and regulations and the approval of the City Council. B. On June 16, 2015, the City Council adopted Resolution No. 2015-026 amending and re-establishing the Basic Classification and Compensation Plan for all Full -Time and Part -Time Classifications of Officers and Employees of the City of Santa Ana. C. It is the Citys practice to assign job titles that reflect the duties and responsibilities of the classification and are consistent with other classifications within the City's organizational structure as well as comparable job .titles in the labor market, while maintaining internal pay equity relationships and attracting and retaining qualified candidates. D. The Human Resources Department has completed a review of the various departmental requests to make changes to the City's organizational structure, classification titles, and staffing which revealed the need to effect certain changes to the City's basic classification and compensation plans. E. The City Council has amended and reestablished the Basic Classification and Compensation Plan on numerous occasions since its adoption. F. It is now desired to amend Council Resolution No. 2015-026, as amended, in order to effect these changes, as shown below: Resolution 2019-XXX Page 1 of 8 75A-15 Section 2: The Santa Ana City Council amends Resolution No. 2015-026, Exhibit "A" as follows: A. Adding the following full time classification title at the monthly fifteen -step salary rate range indicated: 15-Step Salary Rate Range Effective 07/01/17 Monthly Salary Classification Title SSR Minimum -Maximum Library Services Director EM-33 $10211 - $14428 B. Changing the salary rate range for the full time classification titles at the monthly fifteen -step salary rate range indicated: Classification Title FROM: Assistant City Manager (EM) Deputy City Manager (EM) TO: Assistant City Manager (EM) Deputy City Manager (EM) 15-Step Salary Rate Range Effective 07/01/17 Monthly Salary SSR Minimum -Maximum EM-39 $11842 - $16732 EM-44 $13397 - $18933 EM-44 $13397 - $18933 EM-39 $11842 - $16732 Section 3: The Santa Ana City Council amends Resolution No. 2015-026, Exhibit "B" as follows: A. Changing the title and salary range for the following full time classification titles at the monthly six -step salary rate range indicated: Classification Title FROM: Human Resources Clerk (UC) 6-Step Salary Rate Range Effective 09/01/17 Monthly Salary SSR Minimum -Maximum 571 TO: Human Resources Administrative Assistant (UC) 581 $3669 - $4684 . $3852 - $4919 Resolution 2019-XXX Page 2 of 8 75A-16 B. Deleting the title for the following full time classification titles at the monthly six -step salary rate range indicated: 6-Step Salary Rate Range Effective 09/01/17 Monthly Salary Classification Title SSR Minimum -Maximum Finance Executive Secretary (UC) 616 $4574 - $5840 Human Resources Receptionist (UC) 571 $3669 - $4684 Liability Claims Processor (UC) 593 $4085 - $5219 Loss Control Analyst (UC) 663 $5755 - $7344 Loss Control Technician (UC) 642 $5194 - $6630 Risk Management Coordinator (UC) 648 $5350 - $6826 Senior Human Resources Receptionist (UC) 589 $4010 - $5118 Senior Risk Management Technician (UC) 642 $5194 - $6630 Senior Workers Compensation Claims Assistant (UC) 617 $4596 - $5868 Senior Workers Compensation Claims Examiner (UC) 682 $6313 - $8059 Workers Compensation Claims Assistant (UC) 593 $4085 - $5219 Workers Compensation Claims Examiner (UC) 652 $5453 - $6959 Workers Compensation Systems Technician (UC) 603 $4290 - $5480 Section 4: The Santa Ana City Council amends Resolution No. 2015-026, Exhibit "C" as follows: A. Adding the following full time classification title at the monthly five -step salary rate range indicated: 5-Step Salary Rate Range Effective 07/01/17 Monthly Salary Classification Title SSR Minimum -Maximum Police Administrative Budget Manager (RM) M-798 $10258 - $12469 (Non -Sworn) Section 5: The Santa Ana City Council amends Resolution No. 2015-026, Exhibit "E" as follows: A. Adding the following full time classification title at the monthly seventeen - step salary rate range indicated: 17-Step Salary Rate Range Effective 09/01/17 Monthly Salary Classification Title SSR Minimum -Maximum Deputy Public Works Director/ MM-26 $9821 - $14576 Construction Services Manager (MM) Resolution 2019-XXX Page 3 of 8 75A-17 B. Changing the title for the following full time classification titles at the monthly seventeen -step salary rate range Indicated: 17-Step Salary Rate Range Effective 09/01/17 Monthly Salary Classification Title SSR Minimum -Maximum FROM: City Engineer (MM) MM-28 $10317 - $15315 Public Works Maintenance Manager (MM) MM-24 $ 9344 - $13875 Water Resources Manager (MM) MM-26 $ 9821 - $14576 Deputy Public Works Director/ MM-28 $10317 - $15315 City Engineer (MM) Deputy Public Works Director/ MM-24 $ 9344 - $13875 Maintenance Services Manager (MM) Deputy Public Works Director/ MM-26 $ 9821 - $14576 Water Resources Manager (MM) C. Deleting the title for the following full time classification titles at the monthly seventeen -step salary rate range indicated: Classification Title Deputy Building Official/ New Construction (MM) Deputy Building Official/ Plan Check (MM) 17-Step Salary Rate Range Effective 09/01/17 Monthly Salary SSR Minimum -Maximum MM-22 $8898 - $13207 MM-25 $9581 - $14223 D. Adding the following full time classification titles at the monthly five -step salary rate range indicated: 5-Step Salary Rate Range Effective 09/01/17 Monthly Salary Classification Title SSR Minimum -Maximum Facilities Maintenance Manager (AM) AM-723 $7711 - $9376 Fleet Services Manager (AM) AM-723 $7711 - $9376 Public Affairs Information Officer (AM) AM-743 $8503 - $10339 Resolution 2019-XXX Page 4 of 8 75A-18 E. Deleting the title for the following full time classification titles at the monthly five -step salary rate range indicated: 5-Step Salary Rate Range Effective 09/01/17 Monthly Salary Classification Title SSR Minimum -Maximum Benefits Supervisor (AM) AM-723 $7711 - $9376 Workers Compensation Supervisor (AM) AM-723 $7711 - $9376 Section 6: The Santa Ana City Council amends Resolution No. 2015-026, Exhibit "F" as follows: A. Adding the following full time classification titles at the monthly seven -step salary rate range indicated: Classification Title Assistant Engineer Civil Engineer Correctional Records Supervisor Engineering Technician Senior Construction Inspector Utilities Customer Service Supervisor 7-Step Salary Rate Range Effective 09/01/17 Monthly Salary SSR Minimum -Maximum 670 $5488 - $7355 748 $8029 - $10771 638 $4694 - $6291 624 $4382 - $5876 686 $5934 - $7951 645 $4858 - $6510 B. Changing the title for the following full time classification titles at the monthly seven -step salary rate range Indicated: FROM: 7-Step Salary Rate Range Effective 09/01/17 Monthly Salary Classification Title SSR Minimum -Maximum Assistant Engineer II 733 $7463 - $10005 Assistant Fleet Equipment Technician 596 $3822 - $5126 Construction Inspector 1 660 $5226 - $7005 TO: Associate Engineer 733 $7463 - $10005 Assistant Fleet Services Technician 596 $3822 - $5126 Construction Inspector 660 $5226 - $7005 Resolution 2019-XXX Page 5 of 8 75A-19 C. Deleting the title for the following full time classification titles at the monthly seven -step salary rate range indicated: Classification Title Assistant Engineer I Construction Inspector II Downtown Development Liaison Employment Services Fiscal Specialist Environmental Coordinator Housing Authority Intake Specialist Intake Specialist Landscape Development Associate Property Rehabilitation Assistant Senior Assistant Engineer 7-SteD Salary Rate Ranae Effective 09/01/17 Monthly Salary SSR Minimum -Maximum 720 $7005 - $9388 671 $5515 - $7391 681 $5790-$7761 651 $5002 - $6702 710 $6670 - $8941 567 $3318 - $4448 567 $3318 - $4448 710 $6670 - $8941 600 $3896 - $5226 748 $8029 - $10771 Section 7: The Santa Ana City Council amends Resolution No. 2015-026, Exhibit "H" as follows: A. Deleting the title for the following represented categories of non -civil service part-time classification title at the hourly five -step salary rate range indicated: Classification Title Accountant Loss Control Office Assistant Purchasing Agent Structural Plan Examiner I Structural Plan Examiner II 5-Ster) Salary Rate Ranae Effective 07/01/17 Hourly Salary Minimum -Maximum $33.13 - $40.27 $19.56 - $23.77 $30.80 - $37.42 $33.14 - $40.27 $35.48 - $43.11 Section 8: The Santa Ana City Council amends Resolution No. 2015-026, Exhibit "I" as follows: A. Adding the title for the following seasonal and other unaffiliated categories of non -civil service part-time classification title at the hourly five -step salary rate range indicated: 5-Step Salary Rate Range Effective 07/01/17 Hourly Salary Classification Title Minimum -Maximum Human Resources Clerical Aide $13.94 - $16.95 Resolution 2019-XXX Page 6 of 8 75A-20 B. Deleting the title for the following seasonal and other unaffiliated categories of non -civil service part-time classification title at the hourly five -step salary rate range indicated: 5-Step Salary Rate Range Effective 07/01/17 Hourly Salary Classification Title Minimum -Maximum Redevelopment Project Coordinator $42.06 - $51.11 Section 9: All salary rate range classifications are set forth in the City's "Salary Schedule" as periodically updated. Section 10: That except as amended by this Resolution, all other provisions of Resolution No. 2015-026 as amended shall remain in full force and effect Section 11: This Resolution is operative from and after the date upon which it is adopted. ADOPTED this 18th day of June, 2019. APPROVED AS TO FORM: Sonia R. Carvalho City Attorney By: &WIOL"A - R&Ynr�L Laura A. Rossini Senior Assistant City Attorney Resolution 2019-XXX Page 7 of 8 Miguel A. Pulido Mayor 75A-21 AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Norma Mitre, Acting Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2019- to be the original Resolution adopted by the City Council of the City of Santa Ana on June 18, 2019 Date: Clerk of the Council City of Santa Ana Resolution 2019-XXX Page 8 of 8 75A-22 EXHIBIT 4 Capital Improvement Plan (CIP) Book — Fiscal Year 2019-20 hftos://www.santa-ana.orq/finance/budget 75A-23 75A-24 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JUNE 4, 2019 TITLE: PUBLIC HEARING — APPROVE THE FISCAL YEAR 2019-20 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM FOR A TOTAL AMOUNT OF $7,146,686 (STRATEGIC PLAN NOS. 1,6; 2,2; 5,4) 1 ate• / � CITY MMAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on Is' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO SUN T B ZOt9 FILE NUMBER 1. Approve the Fiscal Year 2019 - 20 Community Development Block Grant Program in the amount of $7,146,686, including $5,701,154 from the Grant Year 2019 allocation, anticipated program income in the amount of $275,039, and re -allocation of prior year program funds in the amount of $1,170,493 from the United States Department of Housing and Urban Development. 2. Direct the City Attorney to finalize and authorize the City Manager and the Clerk of the Council to execute memorandums of understanding with various city departments and agreements with nonprofit organizations awarded funds as part of the approved Community Development Block Grant Program for a term beginning July 1, 2019 through June 30, 2020, subject to non -substantive changes approved by the City Manager and City Attorney. City Department Award Community Development Agency -Administration of the CDeG Program. Proposed $1,080,230 funding amount calculated based on 20% administrative cap less Fair Housing amount. Orange County Fair Housing Council Inc. —Provides fair housing education, landlord tenant counseling and enforcement services to combat housing discrimination and city $60,000 administrative support for the residents of the City of Santa Ana. A commitment to further fair housing is arequirement of CDBG funding. Code Enforcement— Community Preservation Services $790,664 Economic Development - Funds are used to make award grants of up to $5,000 to $72 926 eligible microenterprise businesses in the City. Parks, Recreation and Community Services Agency - Neighborhood park $1,435,000 improvements. Public Works Agency - Residential street improvements/Santa Ana Regional $2,150,323 Transportation CenterAmericans with Disability Act improvements. 75B-1 Public Hearing - Fiscal Year 2019 — 2020 CDBG Program June 4, 2019 Page 2 Planning and Building Agency — Neighborhood Sponsored Improvements to address property maintenance and life safety violations, which contribute to the visual blight and! 1 $50,000 decline of an area. Housing — To address rehabilitation of single-family and multi -family housing as well as a $635,000 TOTAL 1 $6,274,143 1 Public Service Organizations Award America on Track — Brighter Futures for Children of Prisoners $45,000 Boys & Girls Club of Santa Ana — Community Based Mentoring Program $40,000 Charitable Ventures of OC — Summer Night Lights $30,000 Community Action Partnerships of OC — Economic Empowerment Your Money Your Goals $30,000 Community Health Initiative Orange County - Provides outreach, education, enrollment, and case management services to vulnerable populations $30,000 Court Appointed Special Advocates — Transitional Age Youth Program $30,000 Delhi Center/Cielo- Family Economic Success Initiative Program $93,205 Delhi Center - Teens Engaged in Learning and Leadership Program $68,461 Delhi Center/ALBI - Skill enrichment, self-expression, stress relief and socialization through various arts activities $61,557 Heritage Museum of OC — The Borrowing Barn $31,320 Legal Aid Society of OC (Community Legal Aid SoCal) - Provides free, holistic legal assistance to survivors of domestic violence $38,000 Lutheran Social Services of So. Cal. — Victims intervention Program $30,000 Nati's House (dba Neutral Ground) - Summer Night Lights Program $60,000 OC Children's Therapeutic Arts Center - After school Arts, Tutoring, Family Counseling, and Parenting Classes $70,000 Public Law Center— Consumer& Community Organizations Legal Assistance Project $30,000 Public Law Center - Affordable Housing & Homelessness Prevention Program $30,000 Second Chance Orange County — More Second Chances $50,000 Taller San Jose Hope Builders — Business applications $30,000 The Cambodian Family — Plan Ahead Youth Program $45,000 Young Men's Christian Association of OC — Financial Assistance Program $30,000 TOTAL $872,543 Note: The public service organizations and the amounts are subject to change pending Recommended Action 2 above. COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION 75B-2 Public Hearing - Fiscal Year 2019 — 2020 CDBG Program June 4, 2019 Page 3 At its Regular Meeting on March 27, 2019, the Community Redevelopment and Housing Commission recommended approval of the nonprofit public services for the FY 2019-20 Community Development Block Grant Program to the City Council by a vote of 6:1 (Urzua, abstained). DISCUSSION The City of Santa Ana receives an annual allocation of Community Development Block Grant (CDBG) Program funds from the United States Department of Housing and Urban Development (HUD) to improve low to moderate -income neighborhoods, eliminate blight and create a more stable economic base. These funds may be used for a diverse range of programs including affordable housing, street improvements, park and public facilities improvements, economic development, code enforcement and public services. The City's CDBG allocation for Grant Year (GY) 2019, FY 2019- 20, is $5,701,154. In addition, program income in the amount of $275,039 is anticipated, and re -allocation of prior year program funds in the amount of $1,170,493 The proposed FY 2019-20 CDBG Program and Funding Plan consists of the Community Redevelopment and Housing Commission's (CRHC) funding recommendations for nonprofit public service programs and staffs funding recommendations for Administration and Planning, Code Enforcement, Economic Development, City Capital Improvements, and Housing. The CDBG Program and Funding Plan can be summarized in two general categories: 1) Capital Projects/CDBG Program Funding Plan, and 2) Public Services. A summary of the process and allocation for the FY 2019-20 CDBG Program is provided below for both general categories. Capital Projects/CDBG Program Funding Plan: The FY 2019-20 CDBG Program Funding Plan includes the funding allocations for administration, fair housing, nonprofit public services, code enforcement in low- to moderate- income areas of the city to address health and safety violations, economic development to provide small business grants, residential street improvements, park improvements, multi -family rehabilitation loans, single-family rehabilitation loans, and homebuyer down payment assistance loans as described in the CDBG FY 2019-20 Program Plan (Exhibit 1). The CDBG allowable cap of 20 percent for administration and fair housing services is estimated to be $1,140,230 for FY 2019-20. Administration is necessary for staffing, compliance, reporting, fiscal management, and monitoring of the entire program. Fair housing is necessary due to CDBG requirements that the City affirmatively further fair housing. The proposed programs and projects have been determined to be of highest priority and need by the Executive Directors of the Parks, Recreation and Community Services Agency, Public Works Agency, Planning and Building Agency and Community Development Agency following the City's internal application process and the competitive public service allocation process described below. Public Services: A maximum of 15 percent of CDBG funding plus anticipated program income not to exceed 15% for FY 2019-20 ($872,543) may be used for public services. For FY 2019-20, the City is providing the entire estimated public service allocation to nonprofit organizations for programs with an emphasis on crime prevention, intervention, and/or suppression for children, youth, and families, 75B-3 Public Hearing - Fiscal Year 2019 — 2020 CDBG Program June 4, 2019 Page 4 economic development, tenant services assistance and programs; and a summer night lights program. (Exhibit 2). Following approval by City Council on December 18, 2018, the City solicited applications from nonprofit organizations from January 2, 2019 to February 4, 2019. Marketing of the CDBG application process and nonprofit outreach efforts included a press release, use of social media via the City's Facebook page, a -mails to a nonprofit organization distribution list, mailings to nonprofits, and a dedicated CDBG webpage. A total of 28 applications were received from 23 nonprofit organizations (four nonprofit organizations submitted multiple applications). Two nonprofit organizations applied for the Summer Night Lights Programs. The applications were submitted to the Community Redevelopment and Housing Commissioners for review and rating based on the following criteria: Criteria Max Points Community Need (Max. 35 Points) • How well does the program align with a City of Santa Ana strategic plan goal AND meet the requirement of a program with an emphasis on crime prevention, intervention, and/or suppression efforts for children, youth and/or families? 15 • If other similar services are provided, how does this application complement or fill an existing gap? 5 • Does this program serve a Neighborhood Initiative residential area that has been adversely affected by disinvestment and decline? 10 • Has the applicant demonstrated a need for the proposed program in Santa Ana? 5 Experience (Max. 20 Points) • Does the organization have experience in providing the proposed service? 10 • Does the applicant have experience administering CDBG or any other Federal rants? 10 Capacity to Provide Service (Max. 25 Points) Will the program benefit Santa Ana residents? If the program is outside of Santa Ana, did the organization explain how Santa Ana residents will be served? 5 Does the program have benchmarks for success? Does the applicant have a means of measuring performance, qualitatively and quantitatively? 10 • Does the organization have the personnel qualified to provide the service and administer the rant? 10 Effective & Efficient Use of Funds (Max. 20 Points) Does the cost per client appear reasonable when compared to 10 75B-4 Public Hearing - Fiscal Year 2019 — 2020 CDBG Program June 4, 2019 Page 5 similar programs? • How many people will be served with CDBG funds; are a majority from Santa Ana? 5 • Does the application clearly identify how the grant funding will be spent? 5 TOTAL POINTS 100 Representatives from each organization were invited to present their proposed public service programs for funding consideration at two Community Redevelopment and Housing Commission public hearings on February 26, 2019 and February 28, 2019 held from 3:OOPM to 7:OOPM on both days. At the special CRHC meeting on March 27, 2019, Commissioners deliberated and finalized the funding recommendations.. The recommended funding amounts for the nonprofit organizations equals $872,543, with the exclusion of the Orange County Fair Housing Council, which is recommended to be funded out of program administration, as in previous years, as permitted by CDBG regulations. A brief summary of all 28 applications are shown in Exhibit 3. Following the review process, the Commission is recommending funding for a total of 20 programs for consideration by City Council. Next Steps: If the FY 2019-20 CDBG Program and Funding Plan is approved, staff will prepare and execute memorandums of understanding with various city departments (Exhibit 4) and agreements with nonprofit organizations (Exhibits 5 and 6) for the period of July 1, 2019 through June 30, 2020. All of the projects and programs are eligible for CDBG funding and are in alignment with the City's Five -Year Consolidated Plan, Strategic Plan and Capital Improvement Program. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's effort to meet: • Goal #1 - Community Safety, Objective #6 (Enhance Public Safety integration, communications and community outreach), Strategy F (The Santa Ana Police Department will collaborate with the Orange County Probation Department, Orange County Healthcare Agency caseworkers, business community, and associated non-profit organizations to assist in re-entry of recently released offenders into the community); • Goal #2 - Youth, Education, Recreation, Objective #2 (Expand youth programing), Strategy A (Focus resources on quality youth engagement, enrichment and education programs through community center, libraries and after -school programs during out -of - school hours), and Strategy B (Expand the youth sports program so that youth recreational opportunities are established year-round); • Goal #5 - Community Health, Livability, Engagement & Sustainability, Objective #4 (Support neighborhood vitality and livability), Strategy D (Implement new Neighborhood Improvement Initiatives focusing on residential areas that have been adversely affected by disinvestment and decline. Program and services from a variety of resources will be 75B-5 Public Hearing - Fiscal Year 2019 — 2020 CDBG Program June 4, 2019 Page 6 utilized to achieve positive and sustainable improvements), and Objective #6 (Focus projects and programs on improving the health and wellness of all residents), Strategy C (Integrate a variety of health and wellness programs into existing programming at each of the city's community/recreation centers). FISCAL IMPACT Funds will be budgeted and available in the Community Development Block Grant account (nos. 13518780, 13518782, and 13518783) upon execution of a grant agreement between the City and HUD and adoption of the FY 2019-20 annual budget. It is anticipated that the CDBG allocation will be expended as follows: Grant Year Accounting Unit Description Accounting Unit - Account No. Anticipated Expenditure in FY Amount 2019 CDBG Administration 13518780-various 2019-20 $1,140,230 2019 CDBG Housing 13518782-various 2019-20 $635,000 2019 CDBG Programs 13518783-various 2019-20 $3,925,924 2018 CDBG Programs 13518783-various 2019-20 $275,039 2014-2018 1 CDBG Programs 13518783-various 2019-20 $1,170,493 TOTAL: $7,146,686 ve Steven A. Mendoza Executive Director Community Development Agency APPROVED AS TO FUNDS AND ACCOUNTS: 6 Kathryn Downs, CPA Executive Director Finance and Management Services Agency Exhibits: 1. CDBG Program Funding Plan and Program Summaries 2. CRHC Nonprofit Funding Recommendations 3. Summary of Nonprofit Applications 4. City Agency Memorandum of Understanding Template 5. Nonprofit Agreement Template 6. Santa Ana Work Center and Nonprofit Memorandum of Understanding Template 75B-6 EXHIBIT 1 ADMINISTRATION & PLANNING Administration and Planning Fair Housing CODEENFORCEMENT Community Preservation Code Enforcement Community Preservation Legal Services ECONOMIC DEVELOPMENT New Business Start -Up NONPROFIT PUBLIC SERVICES Achievemnet Institute of Scientific Studies ALBI Amens on Track Boys & Girls Club of Santa Ana Chadhable Ventures of OC Community Action Partnerships Community Health Initiative Orange County Count Appointed Special Advocates Delhi Center (Family Economic Success Initiative) Delhi Center (Teens Engaged in Leaming and Leadership) Delhi Center/ALBI Heritage Museum of Orange County Legal Aid Society of OC (Clean Slate Project) Legal Aid Society of OC (Domestic Violence Prevenfion Project) Lutheran Social Services of So. Cal. Natfs House (dba Neutral Ground) SNL Nahs House (dba Neutral Ground) OC Children's Therapeutic Ads Center Public Law Center (Consumer) Public Law Center (Housing) Pura Game Santa Ana Xbeme Second Chance Orange County Tager San Jose Hope Builders The Cambodian Family The Chrysalis Center The Illumination Foundation WISEPIace Young Men's Christian Associaiicn of Orange County CITY CAPITAL IMPROVEMENTS Park Improvements Residential Street and In0asbuctural Improvements Neighborhood Sponsored Improvements HOUSING Single Family Rehab -City Multi Family Rehab Homebuyer Down Payment Assistance APPROVED REQUESTED APPROVED FY 18-19 FY 19-20 FY19-20 $ 1,163,391 $ 1,140,230 1,101,150 1,080.230 62,241 60,000 $ 815,644 $ 790,664 765.664 765,664 49.980 25,000 $ 72,926 $ 72,926 72.926 72,926 $ 872,543 $ 872,543 61,557 45,000 45,000 - 40,000 30,000 30.000 38,499 30.000 - 30,000 71,568 93,205 58,776 68,461 - 61,557 - 31,320 44,227 - 36,374 38,000 30,000 51,959 60,000 45,865 - 59,609 70,000 35,807 30,000 37,084 30,000 30,000 50,000 49,125 30,000 43.459 45.000 48,559 39,066 30,000 $ 1,892,455 $ 3,635,323 921,227 1.435,000 921,228 2,150,323 50,000 60,000 $ 1,000,000 $ 635,000 650,000 300,000 160,000 175,000 200,000 160,000 TOTAL $ 5.816,959 $ 7,146,686 CDBG ALLOCATION $ 5,816,959 $ 5,701.154 CDBG ANTICIPATED PROGRAM INCOME $ - $ 275.039 CDBG RE -ALLOCATION -AVAILABLE $ $ 1,170,493 SURPLUS/(DEFICIT) ADMINISTRATION CAP 20% OF ALLOCATION ADMINISTRATION PROPOSED SURPLUS/(DEFICIT) PUBLIC SERVICE CAP 15% OF ALLOCATION PLUS PROGRAM INCOME NOT TO EXCEED 15% PUBLIC SERVICE PROPOSED SURPLUS/(DEFICIT) $ - $ 0 $ $ 1,163,391 $ 1,140.231 $ 1,163,391 $ 1,140.231 $ - $ (0) $ $ 872.543 $ 872,543 $ 872,543 $ 872,643 75B-7 g 0 m 0 a `m m " E 0 u E> m 0 U p L- O m O o m c� E - m O y N LL Q C 0 N C d> m "O an m N Q d y m O E c o C@ y a U p C -0 m - E c m,�-•, .r-. 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Victims Intervention Program 77.00% YMCA of OC - $75,000.00 $30,000.00 $30,000.00 YMCA Financial Assistance Program 76.80% Second Chance Orange County - $60,000.00 $50,000.00 $50,000.00 More Second Chances 76.20% Community Action Partnership of Orange County- $75,000.00 $30,000.00 $30,000.00 Economic Empowerment - Your Money, Your Goals 73.20% Heritage Museum of Orange County- The RomovAnn Ram $49,000.00 $75,000.00 $45,000.00 $50,000.00 $31,320.00 $0.00 75.60% '(3)Nati'sHouse - Neutral Ground 73.00% '(2)SantaAna Xtreme- $65,000.00 $30,000.00 $0.00 Santa Ana Xtreme Softball 72.40% `(t)WisePlace- $4,500.00 $30,000.00 $0.00 Steps of Independence 72.40% Achievement Institute of Scientific Studies - $33,355.00 $33,355.00 $0.00 STEM and Wellness Program 70.40% Legal Aid- $45,240.00 $40,000.00 $0.00 Clean Slate 64.60% Pure Game- $44,000.00 $30,000.00 $0.00 STAR Sports 61.60% The Chrysalis Center- $75,000.00 $30,000.00 $0.00 Chrysalis of Orange County Employment Program . CRHCrecommended the minimum funding request amount for the first 19 organizations. The remaining funds were offered to & accepted by Heritage Museum. If enough additional HUD funding is received to fund additional organizations, CRHC recommended funding in the following order. 1) WisePlace 2)Santa Ana Xtreme and 3)Nati's House Neutral Ground. Fair Housing Funding CRHC Recommendations" services are not subject to the CDBG Program 15% publicryjrr rnp.13 75B-14 EXHIBIT 3 Summary of Community Development Block Grant Nonprofit Applications FY 2019-2020 Public Law Center Santa Ana Community Development Housing Program PLC provides legal assistance and education to Santa Ana residents who are experiencing housing instability and reside in poorly operated and maintained mobile home parks and apartments. PLC supports neighborhood vitality and livability through advocacy for affordable and habitable dwellings. Proposed number to be served: 60 Rank: 1 CRHC Recommendation: $30,000 Score: 87.00% Funding Request: $50,000 Strategic Plan Alignment: 5, 4d Minimum Funding Request: $30,000 America On Track Brighter Futures for Children of Prisoners Children of prisoners deserve the chance to discover a brighter future, which is why America On Track provides them with trained, caring mentors, STEM workshops, a "College is For Me Too!" camp, free books, and special outings, as well as nutrition seminars and wraparound services for the families. Proposed number to be served: 300 Rank: 2 CRHC Recommendation: $45,000 Score: 88.40% Funding Request: $74,778 Strategic Plan Alignment: 2, 2a Minimum Funding Request: $45,000 Community Health Initiative of Orange County Community Health Access Program CHIOC helps City of Santa Ana residents to access health and social service programs by providing outreach, education, enrollment, and case management services to vulnerable populations. We strive to ensure that clients acquire, retain, and utilize community resources effectively. Proposed number to be served:1500 Rank: 3 CRHC Recommendation: $30,000 Score: 87.80% Funding Request: 60,000 Strategic Plan Alignment: 5, 6d Minimum Funding Request: 30,000 Taller San Jose Hope Builders Business Applications In partnership with Santa Ana College (SAC), Hope Builders' business applications program will create economic opportunity for 22 disadvantaged Santa Ana youth by providing them hard skills training in business administration, and life skills support to advance their education and find a job. Proposed number to be served: 22 Rank: 4 CRHC Recommendation: $30,000 Score: 87.80% Funding Request: $75,000 Strategic Plan Alignment: 2, 4a Minimum Funding Request: $30,000 75B-15 Summary of Community Development Block Grant Nonprofit Applications FY 2019-2020 Legal Aid Society of Orange County Domestic Violence Prevention Project The Legal Aid Society of Orange County (LASOC) will provide free, holistic legal assistance to Santa Ana survivors of domestic violence to help them escape abuse and break the cycle of violence. Priority is given to service in the areas of family law, immigration, and healthcare advocacy. Proposed number to be served: 40 Rank: 5 CRHC Recommendation: $38,000 Score: 87.20% Funding Request: $55,736 Strategic Plan Alignment: 1, 6f Minimum Funding Request: $38,000 Orange County Children's Therapeutic Arts Center OCCTAC/Willard Neighborhood Crime Prevention & Intervention Program Orange County Children's Therapeutic Arts Center (OCCTAC) proposes to continue our Willard Crime Prevention & Intervention Program to provide youth and their parents life - changing opportunities through: 1) Arts enrichment, 2)Therapeutic Arts, 3)Family Counseling, 4)Parenting, & 5)Academic Support. Proposed number to be served: 200 Rank: 6 CRHC Recommendation: $70,000 Score: 87.00% Funding Request: $75,000 Strategic Plan Alignment: 2 2a Minimum Funding Request: $70,000 Delhi Center Teens Engaged in Learning and Leadership (TELL) A leadership development program that trains teens to take an active role in designing and implementing educational and team building activities in their community that teach younger children about gang prevention, problem solving, conflict resolution, avoiding risk and making safe choices. Proposed number to be served:125 Rank: 7 CRHC Recommendation: $68,461 Score: 86.60% Funding Request: $74,441 Strategic Plan Alignment: 2, 2a Minimum Funding Request: $68,461 Delhi Center/ALBI School Break Enrichment Program A leadership development program that trains teens to take an active role in designing and implementing educational and team building activities in their community that teach younger children about gang prevention, problem solving, conflict resolution, avoiding risk and making safe choices. Proposed number to be served: 150 Rank: 8 CRHC Recommendation: $61,557 Score: 86.20% Funding Request: $65,210 Strategic Plan Alignment: 2, 2a Minimum Funding Request: $61,557 75B-16 Summary of Community Development Block Grant Nonprofit Applications FY 2019-2020 The Cambodian Family Plan Ahead Youth Program PAYP will help Santa Ana's low-income youth and parents from immigrant families thrive in the areas of academics, leadership and parenting skills so that they are able to be engaged in more positive afterschool activities, stay off streets, and avoid destructive or gang related activity. Proposed number to be served: 114 Rank: 9 CRHC Recommendation: $45,000 Score: 85.60% Funding Request: $75,000 Strategic Plan Alignment: 2, 2a Minimum Funding Request: $45,000 Charitable Ventures of Orange County (Summer Night Lights Project) Getting Residents Engaged in Exercise and Nutrition We propose to expand our GREEN program to host a Summer Night Light program. GREEN is a place -based wellness and learning program at James Madison Elementary. It provides health, education, community, and leadership opportunities for residents specifically in the form of health and wellness workshops and programming. Proposed number to be served: 1200 Rank: 10 CRHC Recommendation: $30,000 Score: 85.50% Funding Request: $30,260 Strategic Plan Alignment: 5, 6d Minimum Funding Request: $30,000 Delhi Center/CIELO Family Economic Success Initiative (FES) A collaborative case management strategy to help low-income families fill vocational, educational, and financial service gaps, so they can make better decisions to earn more, keep more of what they earn, and move up the economic ladder. Proposed number to be served: 100 Rank: 11 CRHC Recommendation: $93,205 Score: 85.00% Funding Request: $125,985 Strategic Plan Alignment: 3, 5c Minimum Funding Request: $93,205 Court Appointed Special Advocate (CASA of Orange County) Transitional Age Youth Program CASA-OC's new TAY Program serves Orange County's most at -risk foster youth, ages 16-21. As most of these youth have spent the majority of their childhood in foster care, without any consistent adult guidance, they are in danger of leaving the system without an education, job or place to live. Proposed number to be served: 115 Rank: 12 Score: 83.80% CRHC Recommendation: $30,000 Funding Request: $50,000 Strategic Plan Alignment: 2, 2a Minimum Funding Request: $30,000 75B-17 Summary of Community Development Block Grant Nonprofit Applications FY 2019-2020 Nati's House Neutral Ground (Summer Night Lights Project) Summer Night Lights Neutral Ground will provide Summer Night Lights for 40 nights during the summer. Parks and recreation centers will be open late so that families can enjoy safe spaces, meet neighbors, find new opportunities and resources, and create relationships with the City and County agencies that serve them. Proposed number to be served: 200 Rank: 13 CRHC Recommendation: $60,000 Score: 83.80% Funding Request: $75,000 Strategic Plan Alignment: 2, 2a Minimum Funding Request: $60,000 Public Law Center Santa Ana Community Development Consumers and Organizations Program PLC provides cradle through retirement legal services to Santa Ana low-income residents to spur economic development by helping clients, keep their hard earned money; and helping clients develop child and dependent care, and home kitchen businesses that will expand the local workforce. Proposed number to be served: 60 Rank: 14 CRHC Recommendation: $30,000 Score: 81.00% Funding Request: $50,000 Strategic Plan Alignment: 3, 5c Minimum Funding Request: $30,000 Boys & Girls Club of Santa Ana College Bound College Bound provides at -risk Santa Ana teens with academic instruction and mentors to help graduate high school on time, prepare for secondary education, technical school, or military and set career goals; this also prevents teens from engaging in activities that could otherwise derail their path. Proposed number to be served: 100 Rank: 15 CRHC Recommendation: $40,000 Score: 78.20% Funding Request: $65,000 Strategic Plan Alignment: 2, 4a Minimum Funding Request: $40,000 Lutheran Social Services of Southern California (LSSSC) Victims Intervention Program (VIP) The Victims Intervention Project (VIP) will provide women who are victims of crime with evidence -based recovery services — direct mental health services, rental assistance, hotel/motel vouchers, intensive case management, transportation, life skills training and other supportive services. Proposed number to be served: 250 Rank: 16 CRHC Recommendation: $30,000 Score: 77.40% Funding Request: $75,000 Strategic Plan Alignment: 5, 4d Minimum Funding Request: $30,000 75B-18 Summary of Community Development Block Grant Nonprofit Applications FY 2019-2020 Young Men's Christian Association of Orange County YMCA Financial Assistance Program - Santa Ana Programs We would like to request CDBG funding to provide Financial Assistance to low income, very low, and extremely low-income participants wishing to enroll in our Santa Ana Sports & Aquatics programs (soccer, swim, dodgeball, fitness programs) and Santa Ana After -School Programs. Proposed number to be served: 210 Rank: 17 CRHC Recommendation: $30,000 Score: 77.00% Funding Request: $75,000 Strategic Plan Alignment: 3, 5c Minimum Funding Request: $30,000 Second Chance Orange County More Second Chances SCOC provides individualized services to SA residents recovering from alcohol and substance abuse, often homeless, who seek stable, sustainable lives. Residents seeking an end to dependency will gain career training, mentoring, support in job placement and ongoing follow- up. Proposed number to be served: 30 Rank: 18 CRHC Recommendation: $50,000 Score: 76.80% Funding Request: $60,000 Strategic Plan Alignment: 1, 6f Minimum Funding Request: $50,000 Community Action Partnership of Orange County Economic Empowerment - Your Money, Your Goals Economic empowerment services for low-income adults and youth in and around Santa Ana; workshops include Your Money Your Goals curriculum, which covers banking, spending plans, and money management by providing tools for participants to develop habits to increase their financial wellbeing. Proposed number to be served: 112 Rank: 19 CRHC Recommendation: $30,000 Score: 76.20% Funding Request: $75,000 Strategic Plan Alignment: 3, 5c Minimum Funding Request: $30,000 Heritage Museum of Orange County The Borrowing Barn The Borrowing Barn will serve as a tool library, time bank, seed library, and DIY educational/community center for the surrounding area. Proposed number to be served: 1350 Rank: 20 CRHC Recommendation: $31,320 Score: 73.20% Funding Request: $49,000 Strategic Plan Alignment: 3, 5c Minimum Funding Request: $45,000 75B-19 Summary of Community Development Block Grant Nonprofit Applications FY 2019-2020 Nati's House Neutral Ground Neutral Ground Nati's House Neutral Ground provides after school programming and mentoring to youth: focusing on violence prevention, gang intervention, restorative practices, mentoring, and drug and alcohol prevention. Neutral Ground also provides street outreach and programming for parents and community. Proposed number to be served: 125 Rank: 21 CRHC Recommendation: $0 Score: 75.60% Funding Request: $75,000 Strategic Plan Alignment: 2, 2a Minimum Funding Request: $50,000 Santa Ana Xtreme Santa Ana Xtreme Softball Develop female athletes as future civic leaders. Teach self-discipline, hard teamwork & important life lessons through softball. Providing a healthful activity & training in an atmosphere of community participtation. Help them with: college recruitment/admission and financial scholarships. Proposed number to be served: 75 Rank: 22 CRHC Recommendation: $0 Score: 73.00% Funding Request: $65,000 Strategic Plan Alignment: 2, 2b Minimum Funding Request: $30,000 WISEPIace Steps of Independence WISEPIace transitional housing, trauma -informed care and wrap -around services provide the tools to move women from homeless to safe and affordable housing, reuniting them with their children and families. Proposed number to be served: 40 Rank: 23 CRHC Recommendation: $0 Score: 72.40% Funding Request: $45,100 Strategic Plan Alignment: 5, 4d Minimum Funding Request: $30,000 Achievement Institute of Scientific Studies Achievement Institute of Scientific Studies STEM and Wellness Program Achievement Institute of Scientific Studies STEM and Wellness Program bridges the student learning gap during transition from middle to high school for Santa Ana students from low income households by providing academic support, cultural enrichment, and wellness to support well rounded students. Proposed number to be served: 95 Rank: 24 CRHC Recommendation: $0 Score: 72.40% Funding Request: $33,355 Strategic Plan Alignment: 2, 2a Minimum Funding Request: $33,355 75B-20 Summary of Community Development Block Grant Nonprofit Applications FY 2019-2020 Legal Aid Society of Orange County Clean Slate Clinic The Clean Slate Clinic will provide free legal assistance to help Santa Ana residents expunge their criminal records as way of opening avenues to employment and reducing criminal recidivism. Proposed number to be served: 100 Rank: 25 CRHC Recommendation: $0 Score: 70.40% Funding Request: $45,240 Strategic Plan Alignment: 1, 6f Minimum Funding Request: $40,000 Pure Game STAR Sports We provide schools a sports -based youth development program. We focus on creating a safe, positive, inclusive environment allowing a higher number of kids to participate and experience our character education and leadership curriculum. Our curriculum helps children make better quality life choices. Proposed number to be served: 1400 Rank: 26 CRHC Recommendation: $0 Score: 64.60% Funding Request: $44,000 Strategic Plan Alignment: 2, 2b Minimum Fundinq Request: $30,000 The Chrysalis Center Chrysalis Orange County Employment Program The Chrysalis Orange County Employment Program is dedicated to creating a pathway to self- sufficiency for homeless and low-income individuals by providing the resources and support needed to find and retain employment. Proposed number to be served: 45 Rank: 27 CRHC Recommendation: $0 Score: 61.60% Funding Request: $75,000 Strategic Plan Alignment: 1, 6f Minimum Funding Request: $30,000 Orange County Fair Housing Council, Inc (dba Fair Housing Council of Orange County) Santa Ana Fair Housing Education, Counseling and Enforcement Serving both housing consumers and providers with fair housing education, counseling and enforcement services to combat housing discrimination, combined with landlord -tenant counseling. Fair housing activities assist Santa Ana in certifying to HUD that it is "affirmatively furthering fair housing". Proposed number to be served: 98 Rank: N/A Score: N/A CRHC Recommendation: $60,000* Funding Request: 66,000 Strategic Plan Alignment: 5, 4d Minimum Funding Request: 60,000 *Fair Housing project funding is from Administrative cap and does not impact Public Service funding. 75B-21 75B-22 EXHIBIT 4 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SANTA ANA AND CITY AGENCY FOR USE OF COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS This Memorandum of Understanding is hereby made and entered into this 1st day of July, 2019, by and between the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("CITY"), and CITY AGENCY of the City, ("SUBRECIPIENT"). RECITALS: A. The CITY, as an entitlement recipient and grantee of the United States Department of Housing and Urban Development ("HUD") Community Development Block Grant ("CDBG") Entitlement Program, Catalog of Federal Domestic Assistance (CFDA) Number 14.218, and Federal Award Identification Number (FAIN)B-19-MC-06-0508 , desires to enter this Agreement with the SUBRECIPIENT for the expenditure of CDBG funds in accordance with Title 24, Part 570 of Code of Federal Regulations 24 CFR 570.000, et seq. ("CDBG REGS'). B. CITY has applied for and received CDBG funds from HUD pursuant to Title I of the Housing and Community Development Act of 1974, Public Law 93-383, as amended ("ACT"). C. The SUBRECIPIENT has been selected by the CITY to receive CDBG funds and administer such financial assistance; and to provide the services described in Exhibit A, in accordance with the schedule of performance included therein, hereinafter referred to as "said program". SUBRECIPIENT represents that it is qualified and willing to operate said program and certifies that the activities carried out with funds provided under this Agreement will meet one or more of the CDBG program's National Objectives (24 CFR Part 570.208). D. SUBRECIPIENT agrees that it will adhere to the performance measurements and outcomes as indicated on Exhibit A (Schedule of Performance). Failure to follow the measurements and meet the stated outcomes may constitute breach of contract that could result in termination of this Agreement or serve as reason for the City to recapture the grant funds awarded to SUBRECIPIENT pursuant to this Agreement. WHEREFORE, it is agreed by and between the parties that the foregoing Recitals are a substantive part of this Agreement and the following terms and conditions are approved and together with all exhibits and attachments hereto, shall constitute the entire Agreement between the CITY and SUBRECIPIENT: I. SUBRECIPIENT'S OBLIGATIONS A. Representations and Warranties. (a) Authority. SUBRECIPIENT is in good standing and authorized to do business under the laws of the State of California. SUBRECIPIENf has full right, power and lawful authority to accept the funding hereunder and to undertake all obligations as provided herein and the execution, performance and delivery of this Agreement by SUBRECIPIENT has been fully authorized by all requisite actions on the part of SUBRECIPIENT. (b) Experience. SUBRECIPIENT is a qualified provider of the services to be provided hereunder. I 75B-23 (c) Familiarity With Services Required. By executing this Agreement, SUBRECIPIENT warrants that (i) it has thoroughly investigated and considered the services to be performed and provided hereunder, (ii) it has carefully considered how the services should be performed, and (iii) it fully understands the facilities, difficulties and restrictions attending performance of the services under this Agreement. (d) No Conflict. To the best of SUBRECIPIENT'S knowledge, SUBRECIPIENT'S execution, delivery and performance of its obligations under this Agreement will not constitute a default or a breach under any contract, agreement or order to which SUBRECIPIENT is a party or by which it is bound. (e) No Bankruptcy. SUBRECIPIENT is not the subject of any current or threatened bankruptcy proceeding. (f) No Pending Legal Proceedings. SUBRECIPIENT is not the subject of a current or threatened litigation that would or may materially affect SUBRECIPIENT'S performance under this Agreement. (g) Application Veracity. All provisions of and information provided in SUBRECIPIENT'S application for funding_ submitted to CITY including any exhibits are true and correct in all material respects. (h) No Pending Investigation. SUBRECIPIENT is not aware that it is the subject of any current or threatened criminal or civil action investigation by any public agency, including without limitation a police agency or prosecuting authority, that would relate to affect performance of the Agreement or provision of services hereunder. B. Amount of Grant/Term and Quarterly Disbursement. The amount granted to SUBRECIPIENT is $00,000 ("CDBG FUNDS"), for the term of July 1, 2019 through June 30, 2020. Such funds shall be expended by SUBRECIPIENT on or before June 30, 2020. The Term of this Agreement may be extended by a writing executed by the City Manager, or his or her designee, and the City Attorney. The CDBG FUNDS shall be disbursed by CITY to SUBRECIPIENT on a quarterly basis subject to and upon receipt and approval of a complete quarterly activity report from SUBRECIPIENT, with the final payment subject to the satisfaction of the condition precedent of submittal of complete reporting information due on or before July 15 of the applicable funding year, as Hereinafter more fully set forth. SUBRECIPIENT shall be obligated to perform such duties as would normally extend beyond the term, including, but not limited to, obligations with respect to indemnification, audits, reporting, data retentiontreporting, and accounting. Failure to provide any of the required documentation and reporting will cause CITY to withhold all or a portion of a request for reimbursement, or return the entire reimbursement package to SUBRECIPIENT, until such documentation and reporting has been received and approved by CITY. The CITY reserves the right to reduce the grant application if the CITY's fiscal monitoring indicates that SUBRECIPIENT's rate of expenditure will result in unspent funds at the end of the program year. Amendments in the grant allocation will be made after consultation with SUBRECIPIENT. C. Use of Funds. SUBRECIPIENT agrees to use all federal funds provided by CITY to SUBRECIPIENT pursuant to this Agreement to operate said program, as set forth in "Exhibit A," attached Hereto and by this reference incorporated herein. SUBRECIPIENT'S failure to perform as required may, in addition to other remedies set forth in this Agreement, result in readjustment of the amount of funds CITY is otherwise obligated to pay to SUBRECIPIENT hereunder. 75B-24 D. Allowable Costs. SUBRECIPIENT agrees to complete said program on or before June 30, 2020, and to use said funds to pay for necessary and reasonable costs allowable under the federal law and regulations to operate said program. Said amounts shall include, but not be limited to, wages, administrative costs, and employee benefits comparable to other similarly situated employees, and indirect costs. Other allowable program costs are detailed in the budget, as set forth in "Exhibit B," attached hereto and by this reference incorporated herein. SUBRECIPIENT shall use all income received from said funds only for the same purposes for which said funds may be expended pursuant to the terms and conditions of this Agreement. SUBRECIPIENT has the ability to adjust line item amounts in the budget with the written approval of the CITY's Executive Director of the Community Development Agency, or designee, so long as the total budget amount does not increase. Pursuant to 2 CFR §200.331(a)(4), the Indirect Cost Rate for the SUBRECIPIENT's award shall be an approved federally recognized indirect cost rate negotiated between the SUBRECIPIENT and the Federal government, or, if no such rate exists, the de minimis indirect cost rate as defined in 2 CFR §200.414(b) Indirect (F&A) costs. For this agreement, the de minimis indirect cost rate of 11.6% will apply. E. . Licensing. SUBRECIPIENT agrees to obtain and maintain all required licenses, registrations, accreditation and inspections from all agencies governing its operations. SUBRECIPIENT shall ensure that its staff shall also obtain and maintain all required licenses, registrations, accreditation and inspections from all agencies governing SUBRECIPIll's operations hereunder. Such licensing requirements include obtaining a City business license, as applicable. F. Zoning. SUBRECIPIENT agrees that any facility/property used in furtherance of said program shall be specifically zoned and permitted for such use(s) and activity(ies). Should SUBRECIPIENT fail to have the required land entitlement and/or permits, thus violating any local, state or federal rules and regulations relating thereto, SUBRECIPIENT shall immediately make good -faith efforts to gain compliance with local, state or federal rules and regulations following written notification of said violation(s) from the CrfY or other authorized citing agency. SUBRECIPIENT shall notify CITY immediately of any pending violations. Failure to notify CITY of pending violations, or to remedy such known violation(s) shall result in termination of grant funding hereunder. SUBRECIPIENT must make all corrections required to bring the facility/property into compliance with the law within sixty (60) days of notification of the violation(s); failure to gain compliance within such time shall result in termination of grant funding hereunder. G. Separation of Accounts. All funds received by SUBRECIPIENT from CITY pursuant to this Agreement shall be maintained in an account in a federally insured banking or savings and loan institution with record keeping of such accounts maintained pursuant to applicable 2 CFR 200.302 requirements. SUBRECIPIENT is not required to maintain separate depository accounts for CDBG FUNDS; provided however, the SUBRECIPIENT must be able to account for receipt, obligation and expenditure of CDBG FUNDS pursuant to applicable 2 CFR 200.302 requirements. H. Audit Report Requirements. SUBRECIPIENT agrees that if SUBRECIPIENT expends Seven Hundred Fifty Thousand Dollars ($750,000) or more in federal funds, SUBRECIPIENT shall have an annual audit conducted by a certified public accountant in accordance with the standards as set forth and published by the United States Office of Management and Budget. SUBRECIPIENT shall provide CITY with a copy of said audit by April 1 of the year following the program year in which this Agreement is executed. 3 75B-25 I. Record Kee�me/Reportine. SUBRECIPIENT shall keep and maintain complete and adequate records and reports on program participants to determine their initial and continuing eligibility for the program services being provided to assist CITY in meeting and maintaining its record keeping responsibilities under the CDBG REGS, including the following: (1) Records a. Documentation evidencing program income requirements in conforraity with 24 CFR 570.504(b((2)(i), (ii) and 24 CFR 570.503(b)(3) and 24 CFR 570.208(a)(2)(B) of the income level of persons and/or families participating in or benefiting by the SUBRECIPIENT program. b. Documentation of the number of persons and/or families participating in or benefiting by the SUBRECIPIENT program. c. Household information shall include number of persons, identification of head of household, race/ethnicity, and income verification of all household members ages 18 and over. d. Documentation of all CDBG FUNDS received from CITY. e. Documentation of expenses as identified in the Budget Proposal, including evidence of incurring -the expense, invoices for goods or services, copies of any and all contracts or documentation pertaining to costs for subcontractors, plus all other invoices and proof of payment for which CDBG FUNDS were expended, and any payments therefor. f. Any such other related records as CITY shall reasonably require or as required to be maintained pursuant to the CDBG REGS. (2) Resorts a. Payment Request. Concurrently with the submittal of each quarterly report, on or before the 15th day of October, January, April and July, SUBRECIP ENT shall submit both: an original invoicelrequest for reimbursement and true copies of invoices, receipts, canceled checks, bank statements, credit card statements, procurement documentation for goods or services, timesheets, payroll records, benefit statements, agreements, contracts or documentation pertaining to costs for subcontractors, and/or other documentation supporting and evidencing how the CDBG FUNDS have been expended during the applicable quarter. b. Quarterly Progress Report. SUBRECIPIENT agrees to keep records of all ethnic and racial statistics of persons and families benefited by SUBRECIPIENT in the performance of its obligations under this Agreement, including, but not limited to, the number of low and moderate income persons and households assisted in accordance with federal income limits, the number of female heads of households assisted, new program information and year-to-date program statistics on expenditures, caseload and activities. Failure to provide any of the required documentation and reporting will cause CITY to withhold all or a portion of a request for reimbursement, or return the entire reimbursement package to SUBRECIPIENT, until such documentation and reporting has been received and approved by CITY. J. Access to Records, CITY and the United States Government and their representatives or auditors shall have access for purposes of monitoring, auditing, and examining SUBRECIPIENT's activities and performance, to books, documents and papers, and the right to examine records of SUBRECIPIENT's subcontractors, bookkeepers and accountants, employees and participants in regard to 75B-26 said program. CITY and the United States Government and their representatives or auditors shall also schedule on -site monitoring at their discretion. Monitoring activities may also include, but are not limited to, questioning employees and participants in said program and entering any premises or any site in which any of the services or activities funded hereunder is conducted or in which any of the records of SUBRECIPIENT are kept. Nothing herein shall be construed to require access to any privileged or confidential information as set forth in federal or state law. K. Location of Records/ftuired Length of Record Keeping. All accounting records, reports, and evidence pertaining to all costs, expenses and the CDBG FUNDS of SUBRECIPIENT and all documents related to this Agreement shall be maintained and kept available at SUBRECIPIENT'S office or place of business for the duration of the Agreement and thereafter for five (5) years from the date of final payment under this Agreement. Records which relate to (a) complaints, claims, administrative proceedings or litigation arising out of the performance of this Agreement, or (b) costs and expenses of this Agreement to which CITY or any other governmental agency takes exception, shall be retained beyond the five (5) years until complete resolution or disposition of such appeals, litigation claims, or exceptions. In the event SUBRECIPIENT does not make the above -referenced documents available within the city of Santa Ana, California, SUBRECIPIENT agrees to pay all necessary and reasonable expenses incurred by CITY in conducting any audit at the location where said records and books of account are maintained. L. Compliance with Law/Program Income. SUBRECIPIENT acknowledges that the funds being provided by CITY for said program are received by CITY pursuant to the ACT as amended and that expenditures of these funds shall be in accordance with the ACT and all pertinent regulations issued by agencies of the federal government, including, but not limited to, all regulations found at Title 24 of the Code of Federal Regulations. Program income received by SUBRECIPIENT shall be returned to CITY unless otherwise provided for in this Agreement. SUBRECIPIENT agrees to comply fully with all federal, state and local laws and court orders applicable to its operation whether or not referred to in this Agreement. M. Debarment. To protect the public interest and ensure the integrity of Federal programs, CITY may only conduct business with responsible persons and may not make any award or permit any award to any party which is debarred or suspended or is otherwise excluded from or ineligible for participation in Federal assistance programs under Executive Order 12549, "Debarment and Suspension". See also 24 CFR 570.609. SUBRECIPIENT must review and sign Exhibit C 'Debarment", which is attached hereto and incorporated herein by this reference. SUBRECIPIENT shall be in good standing, without suspension by the California Secretary of State, Franchise Tax Board and Internal Revenue Service. Any change in the corporate status or suspension of SUBRECIPIENT shall be reported immediately to CITY. N. Confidentiality. Without prejudice to any other provisions of this Agreement, SUBRECIPIENT shall, where applicable, maintain the confidential nature of information provided to it concerning participants in accordance with the requirements of federal and state law, however, SUBRECIPIENT shall submit to CITY and or HUD or its representatives, all records requested, including audit, examinations, monitoring and verifications of reports subrnitted by SUBRECIPIENT, costs incurred and services rendered hereunder. O. Independent Contractor. SUBRECIPIENT agrees that the performance of obligations hereunder is rendered in its capacity as an independent contractor and that it is in no way an agency of CITY. P. Violation of Terms and Conditions. SUBRECIPIENT agrees that if SUBRECIPIENT violates any of the terms and conditions of this Agreement or any prior Agreement whereby CDBG funds were received by SUBRECIPIENT, or if SUBRECIPIENT reports inaccurately, or if on audit there is a 5 75B-27 disallowance of certain expenditures, SUBRECIPIENT agrees to remedy the acts or omissions causing the disallowance and repay CITY all amounts spent in violation thereof. If SUBRECIPIENT engaged in fraudulent activity to obtain and/or justify expenditure of the CDBG funds granted hereunder, SUBRECIPIENT shall be required to reimburse the CITY of all such funds that were obtained and/or spent under fraudulent circumstances. Q. Equipment. SUBRECIPIENT agrees to maintain a record for each item of non -expendable personal property acquired under the terms of this Agreement. Said record shall be made available to CITY upon request. The teen "non -expendable personal property" shall include leased and purchased equipment. R. Prohibited Use. SUBRECIPIENT hereby certifies and agrees that it will not use funds provided through this Agreement to pay for entertainment, meals or gifts, or other prohibited uses. S. Lobbvine. SUBRECIPIENT certifies that it will comply with federal law (31 U.S.C. 1352) and regulations found at 24 CFR Part 87, which provide that no appropriated funds may be expended by the recipient of a federal contract, grant, loan or cooperative agreement to pay any person for influencing or attempting to influence an officer or employee of any agency, Member of Congress, or an officer or employee of a Member of Congress in connection with awarding of any federal contract, the making of any federal grant or loan, entering into any cooperative agreement and the extension, renewal, amendment or modification of any federal contract, grant, loan or cooperative agreement. SUBRECIPIENT shall sign a certification to that effect in a form as set forth in 'Exhibit D," attached hereto and by this reference incorporated herein. SUBRECIPIENT shall submit said signed certification to CITY prior to perfomdng any of its obligations under this Agreement and prior to any obligation arishig on the part of CITY to pay any sums to SUBRECIPIENT under the terms and conditions of this Agreement. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit a "Disclosure Form to Report Lobbying," in accordance with its instructions (Exhibit D). SUBRECIPIENT shall require that the language of this certification be included in the award documents for all sub -awards at all tiers (including subcontractors, sub -grants, and contracts under grants, loans, and cooperative agreements), and agrees to take all actions necessary to ensure that all subrecipients shall similarly certify and disclose accordingly. T. Financial Interest. SUBRECIPIENT agrees that except for the use of CDBG funds to pay salaries and other related administrative or personnel costs, no persons who exercise or have exercised any function with respect to CDBG activities assisted under the terms of this Agreement, or who are in a position to participate in a decision -making process or gain inside information with regard to such activities, may obtain a financial interest or benefit from a CDBG-assisted activity of SUBRECIPIENT, either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter. This prohibition applies to any person who is an employee, agent, consultant, officer, or elected or appointed official of CITY, or of any designated public agency, or the SUBRECIPIENT. U. Labor Standards. The SUBRECIPIENT agrees to comply with the requirements of the Secretary of Labor in accordance with the Davis -Bacon Act as amended, the provisions of Contract Work Hours and Safety Standards Act (40 U.S.C. 327 et seq.) and all other applicable Federal, state and local laws and regulations pertaining to labor standards insofar as those acts apply to the performance of this Agreement. The SUBRECIPIENT agrees to comply with the Copeland Anti -Kick Back Act (18 U.S.C. 874 et seq.) and its implementing regulations of the U.S. Department of Labor at 29 CFR Part 5. The 75B-28 SUBRECIPIENT shall maintain documentation that demonstrates compliance with hour and wage requirements of this part. Such documentation shall be made available to the CITY for review upon request. SUBRECIPIENT agrees that, except with respect to the rehabilitation or construction of residential property containing less than eight (8) units, all contractors engaged under contracts in excess of $2,000.00 for construction, renovation or repair work financed in whole or in part with assistance provided under this contract, shall comply with Federal requirements adopted by the CITY pertaining to such contracts and with the applicable requirements of the regulations of the Department of Labor, under 29 CFR Parts 1, 3, 5 and 7 governing the payment of wages and ratio of apprentices and trainees to journey workers; provided that, if wage rates higher than those required under the regulations are imposed by state or local law, nothing hereunder is intended to relieve the SUBRECIPIENT of its obligation, if any, to require payment of the higher wage. The SUBRECIPIENT shall cause or require to be inserted in full, in all such contracts subject to such regulations, provisions meeting the requirements of this paragraph- V. Section 3 of the Housing and Urban Development Act of 1968. SUBRECIPIENT will make every effort to provide training opportunities for low -and moderate -income persons residing within the community where the construction project is located and contracts awarded to local businesses therein to the greatest extent feasible as required under the provisions of Section 3 of the Housing and Urban Development Act of 1968, the regulations set forth in 24 CFR 135, and all applicable rules and orders issued hereunder prior to the execution of this Agreement. Compliance with the foregoing requirements shall be a condition of the federal financial assistance provided under this Agreement and binding on the SUBRECIPIENT. Failure to fulfill these requirements shall subject the SUBRECIPIENT, its successors and designees, to those sanctions specified by the Agreement through which federal assistance is provided. The SUBRECIPIENT certifies and agrees that no contractual or other disability exists which would prevent compliance with these requirements. SUBRECIPIENT shall make every effort to ensure that all projects funded wholly or in part by CDBG funds shall provide equal employment opportunities for minorities and women. W. Drug Free Workplace. SUBRECIPMNT agrees to provide a drug -free work place and to execute a certification as set forth in "Exhibit E" attached hereto and incorporated herein by this reference. X. Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. The following requirements and standards must be complied with: 2 CFR Part 200 et al. SUBRECIPIENT shall procure all materials, property, or services in accordance with the requirements of 2 CFR 200.318-326. Y. Subpart K of 24 CFR 570. SUBRECIPIENT will carry out its activities in compliance with the requirements of Subpart K of 24 CFR 570, however SUBRECIPIENT does not assume the CITY's environmental responsibilities or the responsibility for initiating the environmental review process under 24 CFR Part 52. Z. Women- and Minority -Owned Businesses (W/MBE) SUBRECIPIENT will use its best efforts to afford small businesses, minority business enterprises, and women's business enterprises the maximum practicable opportunity to participate in the performance of this Agreement in accordance with the requirements of 2 CFR 200.321 "Contracting with small and minority businesses, women's business enterprises, and labor surplus area firms". As used in this Agreement, the term "small business" means a business that meets the criteria set forth in section 3(a) of the Small Business Act, as amended (15 U.S.C. 632), and "minority and women's business enterprise" means a business at least fifty-one percent (51%) owned and controlled by minority group members or women. For the purpose of this definition, "minority group members" are African -Americans, Spanish-speaking, Spanish surnamed or Spanish- 7 75B-29 heritage Americans, Asian -Americans, and American Indians. SUBRECIPIENT may rely on written representations by businesses regarding their status as minority and female business enterprises in lieu of an independent investigation. H. CITY'S OBLIGATIONS A. Payment of Funds. On July 1, 2019, the CITY was allocated $5,701,154 for fiscal year 2019- 2020 from the United States Department of Housing and Urban Development ("HUD") Community Development Block Grant ("CDBG') Entitlement Program. CITY agrees to pay to SUBRECIPMNT when, if and to the extent federal funds are received a sum not to exceed _ Dollars ($00,000) for SUBRECIPIENT'S performance in accordance with the Budget attached hereto as "Exhibit B" during the period of this Agreement. Payments shall be made to SUBRECIPIENT through the submission of invoices/reimbursement requests. CITY shall pay such invoices/reimbursement requests within thirty (30) days after receipt thereof provided CITY is satisfied that such expenses have been incurred and documented within the scope and provisions of this Agreement and that SUBRECIPIENT is in compliance with the terms and conditions of this Agreement. Failure to provide any of the required documentation and reporting will cause CITY to withhold all or a portion of a request for reimbursement, or return the entire reimbursement package to SUBRECIPIENT, until such documentation and reporting has been received and approved by CITY. Documentation may include, but is not limited to true copies of invoices, receipts, canceled checks, bank statements, credit card statements, procurement documentation for goods or services, timesheets, payroll records, benefit statements, agreements, contracts or documentation pertaining to costs for subcontractors, and/or other documentation supporting and evidencing how the CDBG FUNDS have been expended during the applicable quarter. B. Audit of Account. CITY shall include an audit of the account maintained by SUBRECIPIENT in CITY's annual audit of all CDBG FUNDS in accordance with Title 24 of the Code of Federal Regulations and other applicable federal laws and regulations. C. Common Rule: Pursuant to 2 CFR 200.328(a), the CITY manages the day-to-day operations of each grant and subgrant supported activities. CITY staff has detailed knowledge of the grant program requirements and monitors grant and subgrant supported activities to assure compliance with Federal requirements. Such monitoring covers each program, function and activity and performance goals are reviewed periodically. D. Environmental Review: In accordance with 24 CFR 58, the CITY is responsible for undertaking environmental review and maintaining environmental review records for each applicable project. E. Performance Monitoring: CITY shall monitor the performance of SUBRECIPIENT against goals and performance standards required herein. The SUBRECIPIENT shall be responsible to accomplish the levels of performance as set forth in Exhibit A and report such measures quarterly to the CITY. If the SUBRECIPIENT estimates such goals will not be met, the SUBRECIPIENT is to contact the CITY, at which time the CITY will determine if any adjustments to the grant award is appropriate. Substandard performance as determined by the CITY will constitute non-compliance with this Agreement. Should the CITY determine that the SUBRECIPIENT has not performed its obligations as stated in this contract in a satisfactory manner, or if the CITY detemunes that insufficient supporting information has been submitted, the CITY shall notify the SUBRECBPIENT in writing of its determination specifying in full detail the objections which it has to the SUBRECIPIENT's performance. If action to correct such substandard performance is not taken by the SUBRECIPIENT after being 75B-30 notified by the CITY, within a reasonable period of time as stipulated in the written notification, contract suspension or termination procedures will be initiated. 11_I�►C11011RIS t71u1BR[TKiN A. SUBRECIPIENT agrees to comply with Executive Order 11246 which requires that during the performance of this Agreement, SUBRECIPIENT agrees not to discriminate against any employee or applicant for employment because of race, religion, sex, color or national origin. Such action shall include, but not be limited to the following: employment, upgrading, demotion, or transfer, rates of pay or other forms of compensation, and selection for training, including apprenticeship. SUBRECIPIENT agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the SUBRECIPIENT setting forth the provisions of this nondiscrimination clause. B. SUBRECIPIENT agrees to comply with Title VI of the Civil Rights Act of 1964 which indicates that no person shall, on the ground of race, color or national origin, be excluded from participation in, be denied the benefits of, or be subject to discrimination under any program of activity receiving federal financial assistance. C. No person shall, on the grounds of race, sex, creed, color, religion, marital status, national origin, age, sexual orientation, or physical or mental handicap be excluded from participation in, be refused the benefits of, or otherwise be subject to discrimination in any activities, programs or employment supported by this Agreement. SUBRECIPIENT is prohibited from discrimination on the basis of age or with respect to an otherwise qualified handicapped person as provided for under Section 109 of the Housing and Community Development Act of 1974, as amended. D. SUBRECIPIENT agrees to comply with the Age Discrimination Act of 1975 which requires that during the performance of this Agreement, SUBRECIPIENT agrees not to discriminate against any employee or applicant for employment because of age. Such action shall include, but not be limited to the following: employment upgrading, demotion, or transfer, rates of pay or other forms of compensation, and selection for training, including apprenticeship. SUBRECIPIENT agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the SUBRECIPIENT setting forth the provisions of this age discrimination clause. E. SUBRECIPIENT agrees to comply with Section 504 of the Rehabilitation Act of 1973 which requires that no otherwise qualified individual with a disability in the United States, shall, solely by reason of his or her disability, be excluded from the participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving federal financial assistance or under any program or activity conducted by any executive agency or by the United States Postal Service. IV. CONFLICT OF INTEREST Pursuant to the conflict of interest requirements set forth in 24 CFR 570.611 and 2 CFR 200.112, SUBRECIPIENT certifies that no member, officer, employee, agent or assignee of CITY having direct or indirect control of any CDBG monies granted to the CITY, inclusive of the subject CDBG FUNDS, shall serve as an officer of SUBRECIPIENT. Further, any conflict or potential conflict of interest of any officer of SUBRECIPIENT shall be fully disclosed in writing prior to the execution of this Agreement and said writing shall be attached and deemed fully incorporated as a part hereof. Notice shall be sent by SUBRECIPIENT to CITY regarding any changes or modifications to its board of directors and list of officers. 9 75B-31 V. SPECIAL CERTIFICATION FOR RELIGIOUS ENTITIES If SUBRECIPIENT is a religious entity, SUBRECIP= hereby agrees that in connection with the provision of the services SUBRECIPIENT shall provide with CDBG funds, in accordance with 24 CFR 570.2000): A. SUBRECIPIENT shall not discriminate against any employee or applicant for employment on the basis of religion and shall not limit employment or give preference in employment to persons on the basis of religion. B. SUBRECIPIENT shall not discriminate against any person applying for the services SUBRECIPIENT agrees to provide under the terms of this Agreement on the basis of religion and shall not limit such services or give preference to applicants for such services on the basis of religion. C. SUBRECIPIENT shall NOT provide religious instruction or counseling, conduct any religious worship or services, or engage in any religious proselytizing, or exert any religious influence in the provision of the services in said program. The parties agree that this covenant is intended to and shall be construed for the limited purpose of assuring compliance with respect to the use of CrfY funds by SUBRECIPIENT with applicable constitutional limitations respecting the establishment of religion as set forth in the establishment clause under the First Amendment of the United States Constitution and Article I, Section 4 of the California Constitution, and is not in any manner intended to restrict other activities of SUBRECIPIENT. D. The portion of a facility used to provide public services assisted in whole or in part under this Agreement shall contain no sectarian or religious symbols. E. Where the services to be provided under said program are rendered on property owned by the primarily religious entity SUBRECIPIENT, CDBG funds may also be used for minor repairs to such property which are directly related to the cost of rendering the services under said program, where the cost constitutes in dollar terms only an incidental portion of the CDBG expenditure for rendering the services under said program. ►�-�7Ii�I:::: i a3�[iTl�llZill�li_ SUBRECIPMNT agrees not to hire or permit the hiring of any person to fill a position funded through this Agreement if a member of that persons immediate family is employed in an administrative capacity by SUBRECIPIENT. For the purposes of this section, the term "immediate family" means spouse, child, mother, father, brother, sister, brother-in-law, sister-in-law, father-in-law, mother-in-law, son-in-law, daughter-in-law, aunt, uncle, niece, nephew, stepparent and stepchild. The term "administrative capacity" means having selection, hiring, supervisor or management responsibilities. VII. NOTICES Notices to the parties shall, unless otherwise requested in writing, be sent by U.S. Mail, postage prepaid, and addressed as follows: TO CITY: City of Santa Ana Community Development Agency (M-25) 20 Civic Center Plaza P.O. Box 1988 Santa Ana, California 92702-1988 10 75B-32 TO SUBRECIPIENT: Agency Contact Contact Title CITY AGENCY Department 20 Civic Center Plaza, M-25 Santa Ana, CA 92702 VIH. ASSIGNABILITY None of the duties of, or work to be performed by, SUBRECIPIENT under this Agreement shall be subcontracted or assigned to any agency, consultant, or person without the prior written consent of CITY. SUBRECIPIENT must submit all subcontracts and other agreements that relate to this Agreement to CITY. No subcontract or assignment shall terminate or alter the legal obligations of SUBRECIPIENT pursuant to this Agreement. IX. HOLD HARMLESS SUBRECIPIENT shall indemnify, defend and save harmless CITY, its officers, employees, agents, representatives and volunteers from and against any and all damages to or for loss of use of property and for injuries to or death of any person or persons, including property and employees or agents of CITY, and shall defend, indemnify and save harmless CITY, its officers, employees, agents, representatives and volunteers from and against any and all claims, demands, suits, actions or proceedings of any kind or nature, including, but not by way of limitation, workers compensation claims and including attorney fees and reasonable expenses for litigation or settlement, resulting from or arising out of the negligent or wrongful acts, errors or omissions of SUBRECIPIENT, its officers, directors, employees, agents, subcontractors and suppliers arising out of SUBRECIPIENT's performance of this Agreement. X. INSURANCE 1. Commercial General Liability. SUBRECIPIENT agrees to obtain and keep in force during the term of this Agreement a policy of comprehensive commercial public liability insurance insuring the CITY, and SUBRECIPIENT against any liability for accident, injury or death arising out of or in consequence of this Agreement. Such insurance shall be in an amount not less than One Million Dollars ($1,000,000.00) for any injury to or death of any person or persons in any single accident or occurrence. Said policy of comprehensive liability insurance shall be endorsed to provide to CITY at least thirty (30) days written notice prior to cancellation; name CITY, its officers, agents, employees, and volunteers, additional insured; and state that such coverage is primary to any other coverage or self- insurance and CITY. Governmental entities may provide proof of self-insurance. (a) Such insurance shall: (1) name the City of Santa Ana, its officers, agents, representatives, employees and volunteers as additional insured's; (2) be primary with respect to insurance or self-insurance programs maintained by the CITY; (3) contain standard separation of insured's provisions; and (4) give to CITY prompt and timely notice of claim made or suit instituted arising out of SUBRECIPIENT's operations hereunder. (b) SUBRECIPIENT shall: (1) prior to exercising any right under this Agreement, furnish properly executed certificates of insurance and additional insured endorsement to the CITY which shall clearly evidence all coverages required above; (2) provide that such insurance shall not be materially changed or terminated except on 30 days prior written notice to the CITY; (3) maintain such insurance for the period covered by this Agreement; and (4) replace such certificates for policies expiring prior to the expiration of this Agreement I 75B-33 2. Automobile Liability Coverage. SUBRECIPIENT shall also obtain and maintain, during the effective period of this Agreement, broad form automobile liability coverage with a $1,000,000 limit unless reduced by CITY, which applies to both owned/leased and non -owned automobiles used by SUBRECIPIENT employees or participants in performance of this Agreement, or, in the event that SUBRECIPIENT will not utilize such owned/leased automobiles but intends to require employees, participants or other agents to utilize their own automobiles in the performance of this Agreement, SUBRECIPIENf shall secure and maintain on file from all such employees, participants, or agents as self -certification of automobile insurance coverage. Governmental entities may provide proof of self- insurance. 3. Workers' Compensation. If SUBRECIPIENf is an "employer', as set forth in California Labor Code Section 3300 et seq., or utilizes participants as "employees," as set forth in California Labor Code Section 3350 et seq., SUBRECIPIENT shall obtain and keep in force during the term of this Agreement full Workers' Compensation insurance coverage for injuries suffered by participants. Said insurance policy shall guarantee CITY at least thirty (30) days written notice of cancellation or modification. 4. Equipment Coverage. SUBRECIPIENT shall purchase a policy or policies of insurance covering loss or damage to any and all Equipment provided to or purchased by SUBRECIPIENT in accordance with this Agreement. Said insurance shall be in the amount of the full replacement value thereof, providing protection against the classification of fire, extended coverage, vandalism, malicious mischief, theft, and special extended perils. Governmental entities may substitute a certificate of self- insurance. 5. Proof of Insurance. Certificates and endorsements must be submitted and approved by CITY prior to any work under this Agreement. SUBRECIPIENT understands that CITY will make no payments under this Agreement until the required certificates and endorsements have been approved by CITY. XI. A. Upon the expiration of this Agreement, SUBRECIPIENT shall transfer to CITY any CDBG funds on hand at the time of the expiration of this Agreement as well as any accounts receivable attributable to the use of CDBG funds. [24 CFR 570.503(b)(7)] B. Any real property under SUBRECIPIENT's control that was acquired or improved in whole or in part with CDBG funds in excess of $25,000.00 must either be: 1. Used, where CITY has given written approval, to meet one of the national objectives stated in 24 CFR 570.208 until five (5) years after expiration of this Agreement, or for such longer period of time as determined to be appropriate by CITY; or 2. If not used in accordance with subparagraph 1 above, SUBRECIPIENT shall pay to CITY an amount equal to the current fair market value of the property less any portion of the value attributable to the expenditure of non-CDBG funds for acquisition of, or improvement to, the property. Such payment is program income to CITY. C. Subject to the obligations set forth herein, title to equipment acquired under the terms of this Agreement will vest upon acquisition in SUBRECIPIENT. When said equipment which has been acquired in accordance with this Agreement and all applicable regulations is no longer needed for said program, disposition of said equipment will be made as follows: 12 75B-34 1. Items of equipment with a current per unit fair market value of less than $5,000.00 may be retained, sold or otherwise disposed of with no further obligation to CITY. 2. Items of equipment with a current fair market per unit value of $5,000.00 or more may be retained or sold and CITY shall have the right to an amount calculated by multiplying the current market value or proceeds from the sale by CITY's share of federal funds used to acquire the equipment, in accordance with 2 CFR 200.313(e)(2). D. SUBRECIPMNT hereby agrees, upon the demand of CITY, to execute, acknowledge and deliver, or cause any person or entity who may have any claim to rights hereunder or under any document, instrument or agreement executed in furtherance of the services and activities to be performed hereunder, to execute, acknowledge and deliver, to CITY assignment(s), quit claim deed(s) or such other and further instruments, documents and agreements as may be necessary, in the sole and absolute discretion of CITY, to vest in CITY all of SUBRECIPIENT's right, title and interest (if any it may have) in and to CITY, CDBG or other federal, state and/or local accounts or program funds or allocation of funds to which CITY is or may be entitled, either for its own account or as fiduciary or trustee for others, which were obtained for the purpose of the performance of this Agreement or any previous agreements relating to the same subject matter or activities as this Agreement, together with any instruments, loans, grants or advances by SUBRECIPIENT on behalf of CITY, in furtherance of the activities hereunder or thereof. SUBRECIPIENT's obligations and responsibilities set forth in this paragraph "XI. REVERSION OF ASSETS " and in paragraph "XII. TERMINATION" and other requirements pertaining to program income shall not be affected by the temtination of this Agreement and shall survive the date of termination of this Agreement for such period of time as CITY and/or HUD deems necessary for the responsibilities, duties and obligations to be performed and completed to the satisfaction of CITY and HUD. X IL TERMINATION A. This Agreement may be terminated on thirty (30) days' written notice by either party. In the event of such termination, SUBRECIP= shall only be entitled to reimbursement for approved expenses incurred to the effective date of termination. B. This Agreement may be suspended or terminated by CITY upon five (5) days' written notice for violation by SUBRECIPIENT of Federal Laws governing the use of Community Development Block Grunt Funds. In the event of such suspension or temunation, SUBRECIPIENT shall only be entitled to reimbursement for approved expenses incurred up to the effective date of suspension or termination. C. Pursuant to 2 CFR 200.340, in the event SUBRECIPIENT defaults by failing to fulfill all or any of its obligations hereunder, CITY may declare a default and termination of this Agreement by written notice to SUBRECIPIENT, which default and termination shall be effective on a date stated in the notice which is to be not less than ten (10) days after certified mailing or personal service of such notice, unless such default is cured before the effective date of termination stated in such notice. If terminated for cause, CITY shall be relieved of further liability or responsibility under this Agreement, or as a result of the termination thereof; including the payment of money, except for payment for approved expenses incurred for services satisfactorily and timely performed prior to the mailing or service of the notice of termination, and except for reimbursement of (1)any payments made for services not subsequently performed in a timely and satisfactory manner, and (2) costs incurred by CITY in obtaining substitute performance. D. The grant of funds under this Agreement may be terminated for convenience by either the CITY or SUBRECIPIENT, in whole or in part, by setting forth the reasons for such termination, the effective date, and, in the case of portion termination, their portion to b terminated, however, if in the case of a partial 13 75B-35 termination, the CITY determines that the remaining portion of the award will not accomplish the purpose for with the award was made, the CITY may terminate the award in its entirety. E. The grant of funds under this Agreement may be terminated due to the non-performance of SUBRECIPIENT and/or failure of SUBRECIPENT to perform the work described in Exhibits A and B or failure to meet the performance standards and program goals set forth therein. F. In the event this Agreement is terminated as set forth in subparagraphs XII.A. through XII.E., inclusive, SUBRECIPMNT agrees to immediately return to CITY upon CITY's demand and prior to any adjudication of SUBRECIPIENT's rights, any and all funds not used, and to comply with paragraph "XI. REVERSION OF ASSETS" of this Agreement. XIII. LIMITATION OF FUNDS The United States of America, through HUD, may in the future place programmatic or fiscal limitations on the use of CDBG funds which limitations are not presently anticipated. Accordingly, CITY reserves the right to revise this Agreement in order to take account of actions affecting HUD program funding. In the event of funding reduction, CITY may, in its sole and absolute discretion, reduce the budget of this Agreement as a whole or as to costs category, may hhnit the rate of SUBRECIPIENI"s authority to commit and spend funds, or may restrict SUBRECIPIENT s use of both its uncommitted and its unspent funds. Where HUD has directed or requested CITY to implement a reduction in funding, in whole or as to a cost category, with respect to funding for this Agreement, CITY's City Manager or delegate is authorized to act for CITY in implementing and effecting such a reduction and in revising modifying, or amending the Agreement for such purposes. If such a reduction in funding occurs, SUBRECIPMNT shall be permitted to de -scope accordingly. Where CITY has reasonable grounds to question SUBRECIPIENT's fiscal accountability, financial soundness, or compliance with this Agreement, CITY may suspend the operation of this Agreement for up to sixty (60) days upon five (5) days written notice to SUBRECIPMNT of its intention to so act, pending an audit or other resolution of such questions. In no event, however, shall any revisions made by CITY affect expenditures and legally binding commitments made by SUBRECIPIENT. before it received notice of such revision, provided that such amounts have been committed in good faith and are otherwise allowable and that such commitments are consistent with HUD cash withdrawal guidelines. XIV. EXCLUSIVITY AND AMENDMENT OF AGREEMENT This Agreement supersedes any and all other agreements, either oral or in writing, between the parties hereto with respect to the use of CITY's CDBG funds by SUBRECIPIENT and contains all the covenants and agreements between the parties with respect to such employment in any manner whatsoever. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that no other agreement or amendment hereto shall be effective unless executed in writing and signed by both CITY and SUBRECIPIENT. XV. LAWS GOVERNING THIS AGREEMENT This Agreement shall be governed by and construed in accordance with the laws of the State of California, and all applicable federal laws and regulations. XVI. CLOSE-OUT The SUBRECIPIENT agrees to comply with the closeout procedures detailed in 2 CFR §200.343, including the following: 14 75B-36 1. SUBRECIPIENT must submit, no later than ninety (90) calendar days after the end date of the period of performance, all financial, performance, and other reports as required by the terms and conditions of the Federal award; 2. Unless the CITY authorizes an extension, SUBRECIPIENT must liquidate all obligations incurred under the Federal award not later than ninety (90) calendar days after the end date of the period of performance as specified in the terms and conditions of the Federal award; 3. SUBRECIPIENT must promptly refund any balances of unobligated cash that the CITY paid in advance or paid and that is not authorized to be retained by SUBRECIPIENT for use in other projects (See OMB Circular A-129 and 2 CFR §200.345); 4. SUBRECIPIENT must account for any real and personal property acquired with Federal funds or received from the Federal government in accordance with 2 CFR §§200.310- 200.316 and 200.329; and, 5. The CITY should complete all closeout actions for the Federal award no later than one year after receipt and acceptance of all required final reports. XVM VALIDITY AND SEVERABI ITY The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision of this Agreement. Whenever possible, each provision of this AGREEMENT shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this AGREEMENT is held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions of this AGREEMENT. XVIII. WAIVER No delay or omission by either party hereto to exercise any right or power accruing upon any noncompliance or default by the other party with respect to any of the terms of this Agreement shall impair any such right or power or be construed to be a waiver thereof. A waiver by either of the parties hereto of any of the covenants, conditions, or agreements to be performed by the other shall not be construed to be a waiver of any succeeding breach thereof or of any other covenant, condition or agreement herein contained. XIX. I\HSCELLANEOUS PROVISIONS a. Each undersigned represents and warrants that its signature herein below has the power, authority and right to bind their respective parties to each of the terns of this Agreement, and shall indemnify CITY fully, including reasonable costs and attorney's fees, for any injuries or damages to CITY in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. b. All Exhibits and Attachments referenced herein and attached hereto shall be incorporated as if fully set forth in the body of this Agreement. [Signatures on jollorvingpage) 15 75B-37 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the last date and year written below. ATTEST: CITY OF SANTA ANA NORMA MITRE KRISTINE RIDGE Acting Clerk of the Council City Manager APPROVED AS TO FORM: SONIA R. CARVALHO City Aqomey By: ODGE Assist Cit Attorney FOR APPROVAL: SUBRECIPIENT: STEVEN MENDOZA Executive Director Cotnmunity Development Agency NAME Title Tax ID: 00-0000000 DUNS#: 000000000 16 75B-38 City of Santa Ana CDBG Scope of Work Program Year 2019-20 (July 1, 2019 - June 30, 2020) Name of Organization Organization Name Name of Funded Program Program Name Annual Accomplishment Goal I 11TOTAL I Schedule of Performance (estimated) Quarter 1: JUL 1 - SEP 30 Quarter 2: OCT 1 - DEC 31 Quarter 3: JAN 1 - MAR 31 Quarter 4: APR 1 - JUN 30 Ana Unduplicated Participants 0 Program and Funding Description contract period. Low Income Participants 0% Estimated Invoicing R% FISCAL YEAR 2019-2020 PROGRAM BUDGET Organization Name Organization Name Program Name Program Name EXPENDITURES Enter budget categories and projected expenditures for the proposed Program: Category Expenditures Funded By Santa Ana CDBG Expenditures Funded By Other Sources Program Budget Total Organization Budget Administrative Staff Salaries $0 $0 Program Staff Salaries $0 $0 Contractual/Professional Services $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 TOTAL Direct Costs $0 $0 $0 $0 Indirect Costs 10% $0 $0 TOTAL BUDGET $0 $0 $0 $0 Indirect cost rate: 10% Non -Federal entity without federaly recognized negotiated indirect cost rate, will charge a de minimis rate of 10% of modified total direct costs. PROGRAM RESOURCES LISTALLOTHER PROGRAM RESOURCES FOR 2019-2020 Funding Source Total must equal Program Budget Total listed above. FUNDING SOURCE AMOUNT Santa Ana CDBG TOTAL $ 2019-2020 CDBG BUDGET LINE ITEMS ADMINISTRATIVE STAFF Position Title Annual Salary CDBG Funds Requested Description PROGRAM STAFF Position Title Annual Salary CDBG Funds Requested Description CONTRACTUAL/PROFESSIONAL SERVICES Type of Service Contract Amount CDBG Funds Requested Description OTHER LINE ITEMS Line Item Program Amount CDBG Funds Requested Description Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion Lower Tier Covered Transactions This certification is required by the regulations implementing Executive Order 12549, Debarment and Suspension, 29 CFR Part 98, Section 98.510, Participants' responsibilities, The regulations were published as Part VII of the May 26,1988 Federal Register (pages 19160-19211). (BEFORE COMPLETING CERTIFICATION, READ INSTRUCTIONS FOR CERTIFICATION - Attached) (1) The prospective recipient of federal assistance funds certifies, by submission of this proposal, that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any federal department or agency- (2) Where the prospective recipient of federal assistance funds is unable to certify to any of the statements in this certification, such prospective participant shall attach an explanation to this proposal. Name and Title of Authorized Representative Signature Date EXHIBIT C Page 1 of 2 75B-42 1. By signing and submitting this proposal, the prospective recipient of federal assistance funds is providing the certification as set out below. 2. The certification in this clause is a material representation of fact upon which reliance was placed when this transaction was entered into. If it is later detennined that the prospective recipient of federal assistance funds knowingly rendered an erroneous certification, in addition to other remedies available to the Federal Government, the Department of Labor (DOL) may pursue available remedies, including suspension and/or debarment. The prospective recipient of federal assistance funds shall provide immediate written notice to the person to which this proposal is submitted if at any time the prospective recipient of federal assistance funds learns that its certification was erroneous when submitted or has become erroneous by reason of changed circumstances. 4. The terms "covered transaction," "debarred," "suspended," 'ineligible," 'lower tier covered transaction," "participant," 'person," "primary covered transaction," "principal," "proposal," and "voluntarily excluded," as used in this clause, have the meanings set out in the Definitions and Coverage sections of rules implementing Executive Order 12549. You may contact the person to which this proposal is submitted for assistance in obtaining a copy of those regulations. 5. The prospective recipient of federal assistance funds agrees by submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the-DOL. 6. The prospective recipient of federal assistance funds further agrees by submitting this proposal that it will include the clause titled "Certification Regarding Debarment, Suspension, Ineligibility and voluntary exclusion - Lower Tier Covered Transactions," without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions. 7. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that it is not debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. A participant may decide the method and fiequency by which it determines the eligibility of its principals. Each participant may, but is not required to check the List of Parties Excluded from Procurement or Non - Procurement Programs. S. Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render in good faith the certification required by this clause. The knowledge and information of a participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings. 9. Except for transactions authorized under paragraph 5 of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the DOL may pursue available remedies, including suspension and/or debarment. EXHIBIT C Page 2 of 2 75B-43 Certification Regarding Lobbying Certification for Contracts, Grants, Loans, and Cooperative Agreements The undersigned certifies, to the best of his or her knowledge and belief, that: (1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contact, grant, loan or cooperative agreement. (2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. (3) The undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontract, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, U. S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. Grantee/Contactor Organization Program Title Name of Certifying Officer Signature Date EXHIBIT D Page 1 of 2 75B-44 SUBRECIPIENT warrants the following: 1. SUBRECIPIENT will comply with Public Law 88-352, Title VI of the Civil Rights Act of 1964 (42 U. S. C. section 2000 et seq.) and implementing regulation in 24 CFR Part 1. 2. No person in the United States shall on the ground of race, color, religion, national origin, or sex, be excluded from participation in, or be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with community development funds made available pursuant to the ACT. 3. All laborers and mechanics, employed by contractors or subcontractors in the performance of construction work financed in whole or in part with community development funds shall be paid wages at rates not less than those prevailing on similar construction in the locality as determined in accordance with the Davis -Bacon Act, as amended, 40 U. S. C. Sections 276 a 1-5, except for individuals who perform services for which they volunteered; do not receive compensation for such services; or are paid expenses, reasonable benefits, or a nominal fee for such services; and are not otherwise employed at any time in construction work. 4. SUBRECIPIENT will comply with all Federal statutes applicable to projects funded with community development funds, except that (a) SUBRECIPIENT does not assume CITY'S environmental responsibilities described at 24 CFR 570.604; and (b) SUBRECIPIENT does not assume CITY'S responsibility for initiating the review process under Executive Order 12372. EXHIBIT D Page 2 of 2 75B-45 Certification Re-garding Drug -Free Workplace Requirements The certification set out below is a material representation upon which reliance is placed by the U.S. Department of Housing and Urban Development in awarding the grant. If it is later determined that the contractor knowingly rendered a false certification, or otherwise violates the requirements of the Drug -Free Workplace Act, the U.S. Department of Housing and Urban Development, in addition to any other remedies available to the Federal Government, may take action authorized under the Drug -Free Workplace Act. CERTIFICATION A. The contractor certifies that it will provide a drug -free workplace by: (a) Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession or use of a controlled substance is prohibited in the contractor's workplace and specifying the actions that will be taken against employees for violation of such prohibition; (b) Establishing a drug -free awareness program to inform employees about— (1) The dangers of drug abuse in the workplace; (2) The contractor's policy of maintaining a drug -free workplace; (3) Any available drug counseling, rehabilitation, and employee assistance program; and (4) The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace; (c) Making it a requirement that each employee who will be engaged in the performance of the grant be given a copy of the statement required by paragraph (a); (d) Notifying the employee in the statement required by paragraph -(a) that, as a condition of employment under the contract, the employee will - (1) Abide by the terms of the statement; and (2) Notify the employer of any criminal drug statute conviction for a violation occurring in the workplace no later than five days after such conviction. (e) Notifying the U.S. Department of Housing and Urban Development within ten days after receiving notice under subparagraph (d)(2) from an employee or otherwise receiving actual notice of such conviction; EXHIBIT E Page 1 of 3 75B-46 (f) Taking one of the following actions, within 30 days of receiving notice under subparagraph (d)(2), with respect to any employee who is so convicted - ( 1) Taking appropriate personnel action against such an employee, up to and including termination; or (2) Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency; (g) Making a good faith effort to continue to maintain a drug -free workplace through implementation of paragraphs (a), (b), (c), (d), (e) and (f). B. The contractor shall insert in the space provided on the attached "Place of Performance" form the site(s) for the performance of work to be carried out with the grant funds (including street address, city, county, state, and zip code) .the contractor further certifies that, if it is subsequently determined that additional sites will be used for the performance of work under the contract, It shall notify the U.S. Department of Housing and Urban Development immediately upon the decision to use such additional sites by submitting a revised "Place of Performance" form. Organization Authorized Signature Date EXHIBIT E Page 2 of 3 75B-47 PLACE OF PERFORMANCE FOR CERTIFICATION REGARDING DRUG -FREE WORKPLACE REQUIREMENTS Name: Date: The Contractor shall insert in the space provided below the site(s) expected to be used for the performance of work under the contract covered by the certification: Place of Performance (include street address, city, county, state, zip code for each site): EXHIBIT E Page 3 of 3 75B-48 EXHIBIT 5 AGREEMENT BETWEEN THE CITY OF SANTA ANA AND NONPROFIT ORGANIZATION NAME FOR USE OF COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS This Agreement is hereby made and entered into this 1 st day of July, 2019, by and between the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("CITY"), and Nonprofit Organization Name, a California nonprofit corporation ("SUBRECIPIENT'). RECITALS: A. The CITY, as an entitlement recipient and grantee of the United States Department of Housing and Urban Development ("HUD") Community Development Block Grant ("CDB(T") Entitlement Program, Catalog of Federal Domestic Assistance (CFDA) Number 14.218, and Federal Award Identification-hlumb'er (FAIN) B-19-MC-06-0508 , desires to enter this Agreement with the SUBRECIPIENT for the expenditure of CDBG funds in accordance with Title 24, Part 570 of Code of Federal Regulations 24 CFR 570.000, et seq. ("CDBG REGS"). B. CITY has applied for and received CDBG funds from HUD pursuant to Title I of the Housing and Community Development Act of 1974, Public Law 93-383, as amended ("ACT"). C. The SUBRECIPIENT is a private nonprofit corporation that has been selected by the CITY to receive CDBG funds and administer such financial assistance; and to provide the services described in Exhibit A, in accordance with the schedule of performance included therein, hereinafter referred to as "said program". SUBRECIPIENT represents that it is qualified and willing to operate said program and certifies that the activities carried out with funds provided under this Agreement will meet one or more of the CDBG program's National Objectives (24 CFR Part 570.208). D. SUBRECIPIENT agrees that it will adhere to the performance measurements and outcomes as indicated on Exhibit A (Schedule of Performance). Failure to follow the measurements and meet the stated outcomes may constitute breach of contract that could result in termination of this Agreement or serve as reason for the City to recapture the grant funds awarded to SUBRECIPIENT pursuant to this Agreement. WHEREFORE, it is agreed by and between the parties that the foregoing Recitals are a substantive part of this Agreement and the following terms and conditions are approved and together with all exhibits and attachments hereto, shall constitute the entire Agreement between the CITY and SUBRECIPIENT: L SUBRECIPIENT'S OBLIGATIONS A. Nonprofit Status - Representations and Warranties. (a) Authority. SUBRECIPIENT is a duly organized and existing nonprofit corporation in good standing and authorized to do business under the laws of the State of California. SUBRECIPIENT has full right, power and lawful authority to accept the funding hereunder and to undertake all obligations as provided herein and the execution, performance and delivery of this Agreement by SUBRECIPIENT has been fully authorized by all requisite actions on the part of SUBRECIPIENT. (b) Experience. SUBRECIPIENT is a qualified provider of the services to be provided hereunder. 75B-49 (c) Familiarity With Services Required. By executing this Agreement, SUBRECIPIENT warrants that (i) it has thoroughly investigated and considered the services to be performed and provided hereunder, (ii) it has carefully considered how the services should be performed, and (iii) it fully understands the facilities, difficulties and restrictions attending performance of the services under this Agreement. (d) No Conflict. To the best of SUBRECIPIENT'S knowledge, SUBRECIPIENT'S execution, delivery and performance of its obligations under this Agreement will not constitute a default or a breach under any contract, agreement or order to which SUBRECIPIENT is a party or by which it is bound. (e) No Bankruptcy. SUBRECIPIENT is not the subject of any current or threatened bankruptcy proceeding. (f) No Pending Legal Proceedings. SUBRECIPIENT is not the subject of a current or threatened litigation that would or may materially affect SUBRECIPIENT'S performance under this Agreement. (g) Application Veracity. All provisions of and information provided in SUBRECIPIENT'S application for funding submitted to CITY including any exhibits are true and correct in all material respects. (h) No Pending Investigation. SUBRECIPIENT is not aware that it is the subject of any current or threatened criminal or civil action investigation by any public agency, including without limitation a police agency or prosecuting authority, that would relate to affect performance of the Agreement or provision of services hereunder. B. Amount of Grant/Tenn and Quarterly Disbursement. The amount granted to SUBRECIPIENT is $00,000 ("CDBG FUNDS"), for the term of July 1, 2019 through June 30, 2020 for the program named: XXXX. Such funds shall be expended by SUBRECIPIENT on or before June 30, 2020. The Term of this Agreement may be extended by a writing executed by the City Manager, or his or her designee, and the City Attorney. The CDBG FUNDS shall be disbursed by CITY to SUBRECIPIENT on a quarterly basis subject to and upon receipt and approval of a complete quarterly activity report from SUBRECIPIENT, with the final payment subject to the satisfaction of the condition precedent of submittal of complete reporting information due on or before July 15 of the applicable funding year, as hereinafter more fully set forth. SUBRECIPIENT shall be obligated to perform such duties as would normally extend beyond the term, including, but not limited to, obligations with respect to indemnification, audits, reporting, data retention/reporting, and accounting. Failure to provide any of the required documentation and reporting will cause CITY to withhold all or a portion of a request for reimbursement, or return the entire reimbursement package to SUBRECIPIENT, until such documentation and reporting has been received and approved by CITY. The CITY reserves the right to reduce the grant application if the CITY's fiscal monitoring indicates that SUBRECIPIENf's rate of expenditure will result in unspent funds at the end of the program year. Amendments in the grant allocation will be made after consultation with SUBRECIPIENT. C. Use of Funds. SUBRECIPIENT agrees to use all federal funds provided by CITY to SUBRECIPIENT pursuant to this Agreement to operate said program, as set forth in "Exhibit A," attached hereto and by this reference incorporated herein. SUBRECIPIENT'S failure to perform as required may, in addition to other remedies set forth in this Agreement, result in readjustment of the amount of funds CITY is otherwise obligated to pay to SUBRECIPIENT hereunder. 2 75B-50 D. Allowable Costs. SUBRECIPIENT agrees to complete said program on or before June 30, 2020, and to use said funds to pay for necessary and reasonable costs allowable under the federal law and regulations to operate said program. Said amounts shall include, but not be limited to, wages, administrative costs, and employee benefits comparable to other similarly situated employees, and indirect costs. Other allowable program costs are detailed in the budget, as set forth in "Exhibit B," attached hereto and by this reference incorporated herein. SUBRECIPIENT shall use all income received from said funds only for the same purposes for which said funds may be expended pursuant to the terms and conditions of this Agreement. SUBRECIPIENT has the ability to adjust line item amounts in the budget with the written approval of the CITY's Executive Director of the Community Development Agency, or designee, so long as the total budget amount does not increase. Pursuant to 2 CFR §200.331(a)(4), the Indirect Cost Rate for the SUBRECIPIENT's award shall be an approved federally recognized indirect cost rate negotiated between the SUBRECIPIENT and the Federal government, or, if no such rate exists, the de minimis indirect cost rate as defined in 2 CFR §200.414(b) Indirect (F&A) costs. For this agreement, the de minimis indirect cost rate of 10% will apply. E. Licensine. SUBRECIPIENT agrees to obtain and maintain all required licenses, registrations, accreditation and inspections from all agencies governing its operations. SUBRECIPIENT shall ensure that its staff shall also obtain and maintain all required licenses, registrations, accreditation and inspections from all agencies governing SUBRECIPIENTs operations hereunder. Such licensing requirements include obtaining a City business license, as applicable. F. Zoning. SUBRECIPIENT agrees that any facility/property used in furtherance of said program shall be specifically zoned and permitted for such use(s) and activity(ies). Should SUBRECIPIENT fail to have the required land entitlement and/or permits, thus violating any local, state or federal rules and regulations relating thereto, SUBRECIPIENT shall immediately make good -faith efforts to gain compliance with local, state or federal rules and regulations following, written notification of said.violation(s) from the CITY or other authorized citing agency. SUBRECIPIENT shall notify CITY immediately of any pending violations. Failure to notify CITY of pending violations, or to remedy such known violation(s) shall result in termination of grant funding hereunder. SUBRECIPIENT must make all corrections required to bring the facility/property into compliance with the law within sixty (60) days of notification of the violation(s); failure to gain compliance within such time shall result in termination of grant funding hereunder. G. Separation of Accounts. All funds received by SUBRECIPIENT from CITY pursuant to this Agreement shall be maintained in an account in a federally insured banking or savings and loan institution with record keeping of such accounts maintained pursuant to applicable 2 CFR 200.302 requirements. SUBRECIPIENT is not required to maintain separate depository accounts for CDBG FUNDS; provided however, the SUBRECIPIENT must be able to account for receipt, obligation and expenditure of CDBG FUNDS pursuant to applicable 2 CFR 200302 requirements. H. Audit Report Requirements. SUBRECIPIENT agrees that if SUBRECIPIENT expends Seven Hundred Fifty Thousand Dollars ($750,000) or more in federal funds, SUBRECIPIENT shall have an annual audit conducted by a certified public accountant in accordance with the standards as set forth and published by the United States Office of Management and Budget. SUBRECIPIENT shall provide CITY with a copy of said audit by April 1 of the year following the program year in which this Agreement is executed. I. Record Keeping/Reporting. SUBRECIPIENT shall keep and maintain complete and adequate records and reports on program participants to determine their initial and continuing eligibility for 3 75B-51 the program services being provided to assist CITY in meeting and maintaining its record keeping responsibilities under the CDBG REGS, including the following: (1) Records a. Documentation evidencing program income requirements in conformity with 24 CFR 570.504(b((2)(i), (ii) and 24 CFR 570.503(b)(3) and 24 CFR 570.208(a)(2)(B) of the income level of persons and/or families participating in or benefiting by the SUBRECIPIENT program. b. Documentation of the number of persons and/or families participating in or benefiting by the SUBRECIPIENT program. c. Household information shall include number of persons, identification of head of household, race/ethnicity, and income verification of all household members ages 18 and over. d. Documentation of all CDBG FUNDS received from CITY. e. Documentation of expenses as identified in the Budget Proposal, including evidence of incurring the expense, invoices for goods or services, copies of any and all contracts or documentation pertaining to costs for subcontractors, plus all other invoices and proof of payment for which CDBG FUNDS were expended, and any payments therefor. f. Any such other related records as CITY shall reasonably require or as required to be maintained pursuant to the CDBG BEGS. (2) Reports a. Payment Request. Concurrently with the submittal of each quarterly report, on or before the 15th day of October, January, April and July, SUBRECIPIENT shall submit both: an original invoice/request for reimbursement and true copies of invoices, receipts, canceled checks, bank statements, credit card statements, procurement documentation for goods or services, timesheets, payroll records, benefit statements, agreements, contracts or documentation pertaining to costs for subcontractors, and/or other documentation supporting and evidencing how the CDBG FUNDS have been expended during the applicable quarter. b. Quarterly Progress Report. SUBRECIPIENT agrees to keep records of all ethnic and racial statistics of persons and families benefited by SUBRECIPIENT in the performance of its obligations under this Agreement, including, but not limited to, the number of low and moderate income persons and households assisted in accordance with federal income lhttits, the number of female heads of households assisted, new program information and year-to-date program statistics on expenditures, caseload and activities. Failure to provide any of the required documentation and reporting will cause CITY to withhold all or a portion of a request for reimbursement, or return the entire reimbursement package to SUBRECIPIENT, until such documentation and reporting has been received and approved by CITY. J. Access to Records. CITY and the United States Government and their representatives or auditors shall have access for purposes of monitoring, auditing, and examining SUBRECIPIENT's activities and performance, to books, documents and papers, and the right to examine records of SUBRECIPIENT's subcontractors, bookkeepers and accountants, employees and participants in regard to said program. CITY and the United States Government and their representatives or auditors shall also schedule on -site monitoring at their discretion. Monitoring activities may also include, but are not limited 75B-52 to, questioning employees and participants in said program and entering any premises or any site in which any of the services or activities funded hereunder is conducted or in which any of the records of SUBRECIPIENT are kept. Nothing herein shall be construed to require access to any privileged or confidential information as set forth in federal or state law. K. Location of Records/Required Length of Record Keeping. All accounting records, reports, and evidence pertaining to all costs, expenses and the CDBG FUNDS of SUBRECIPIENT and all documents related to this Agreement shall be maintained and kept available at SUBRECIPIENT'S office or place of business for the duration of the Agreement and thereafter for five (5) years from the date of final payment under this Agreement. Records which relate to (a) complaints, claims, administrative proceedings or litigation arising out of the performance of this Agreement, or (b) costs and expenses of this Agreement to which CITY or any other governmental agency takes exception, shall be retained beyond the five (5) years until complete resolution or disposition of such appeals, litigation claims, or exceptions. In the event SUBRECIPIENT does not make the above -referenced documents available within the city of Santa Ana, California, SUBRECIPIENT agrees to pay all necessary and reasonable expenses incurred by CITY in conducting any audit at the location where said records and books of account are maintained. L. Compliance with Law/Profmm Income. SUBRECIPIENT acknowledges that the funds being provided by CITY for said program are received by CITY pursuant to the ACT as amended and that expenditures of these funds shall be in accordance with the ACT and all pertinent regulations issued by agencies of the federal government, including, but not limited to, all regulations found at Title 24 of the Code of Federal Regulations. Program income received by SUBRECIPIENT shall be returned to CITY unless otherwise provided for in this Agreement. SUBRECIPIENT agrees to comply fully with all federal, state and local laws and court orders applicable to its operation whether or not referred to in this Agreement. M. Debarment. To protect the public interest and ensure the integrity of Federal programs, CITY may only conduct business with responsible persons and may not make any award or permit any award -to any party which is debarred or suspended or is otherwise excluded.from or ineligible for participation in Federal assistance programs under Executive Order 12549, "Debarment and Suspension". See also 24 CFR 570.609. SUBRECIPIENT must review and sign Exhibit C "Debarment", which is attached hereto and incorporated herein by this reference. SUBRECIPIENT shall be in good standing, without suspension by the California Secretary of State, Franchise Tax Board and Internal Revenue Service. Any change in the corporate status or suspension of SUBRECIPIENT shall be reported immediately to CITY. N. Confidentiality. Without prejudice to any other provisions of this Agreement, SUBRECIPIENT shall, where applicable, maintain the confidential nature of information provided to it concerning participants in accordance with the requirements of federal and state law. However, SUBRECIPIENT shall submit to CITY and or HUD or its representatives, all records requested, including audit, examinations, monitoring and verifications of reports submitted by SUBRECIPIENT, costs incurred and services rendered hereunder. O. Independent Contractor. SUBRECIPMNT agrees that the performance of obligations hereunder is rendered in its capacity as an independent contractor and that it is in no way an agency of CITY. P. Violation of Terms and Conditions. SUBRECIPIENT agrees that if SUBRECIPIENT violates any of the terms and conditions of this Agreement or any prior Agreement whereby CDBG funds were received by SUBRECIPIENT, or if SUBRECIPIENT reports inaccurately, or if on audit there is a disallowance of certain expenditures, SUBRECIPIENT agrees to remedy the acts or onilssions causing the disallowance and repay CITY all amounts spent in violation thereof. If SUBRECIPIENT engaged in 75B-53 fraudulent activity to obtain and/or justify expenditure of the CDBG funds granted hereunder, SUBRECIPIENT shall be required to reimburse the CITY of all such funds that were obtained and/or spent under fraudulent circumstances. Q. Equipment. SUBRECIPIENT agrees to maintain a record for each item of non -expendable personal property acquired under the terms of this Agreement. Said record shall be made available to CITY upon request. The term "non -expendable personal property" shall include leased and purchased equipment. R. Prohibited Use. SUBRECIPIENT hereby certifies and agrees that it will not use funds provided through this Agreement to pay for entertainment, meals or gifts, or other prohibited uses. S. Lobbvina. SUBRECIPMNT certifies that it will comply with federal law (31 U.S.C. 1352) and regulations found at 24 CFR Part 87, which provide that no appropriated funds may be expended by the recipient of a federal contract, grant, loan or cooperative agreement to pay any person for influencing or attempting to influence an officer or employee of any agency, Member of Congress, or an officer or employee of a Member of Congress in connection with awarding of any federal contract, the making of any federal grant or loan, entering into any cooperative agreement and the extension, renewal, amendment or modification of any federal contract, grant, loan or cooperative agreement. SUBRECIPMNT shall sign a certification to that effect in a form as set forth in "Exhibit D," attached hereto and by this reference incorporated herein. SUBRECIPIENT shall submit said signed certification to CITY prior to performing any of its obligations under this Agreement and prior to any obligation arising on the part of CITY to pay any sums to SUBRECIPIENT under the terms and conditions of this Agreement. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit a "Disclosure Form to Report Lobbying," in accordance with its instructions (Exhibit D). SUBRECIPIENT shall require that the language of this certification be included in the award documents for all sub -awards at all tiers (including subcontractors, sub -grants, and contracts under grants, loans, and cooperative agreements), and agrees to take all actions necessary to ensure that all subrecipients shall similarly certify and disclose accordingly. T. Financial Interest. SUBRECIPIENT agrees that except for the use of CDBG funds to pay salaries and other related administrative or personnel costs, no persons who exercise or have exercised any function with respect to CDBG activities assisted under the terms of this Agreement, or who are in a position to participate in a decision -malting process or gain inside information with regard to such activities, may obtain a financial interest or benefit from a CDBG-assisted activity of SUBRECIPIENT, either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter. This prohibition applies to any person who is an employee, agent, consultant, officer, or elected or appointed official of CITY, or of any designated public agency, or the SUBRECIPIENT. U. Labor Standards. The SUBRECIPIENT agrees to comply with the requirements of the Secretary of Labor in accordance with the Davis -Bacon Act as amended, the provisions of Contract Work Hours and Safety Standards Act (40 U.S.C. 327 et seq.) and all other applicable Federal, state and local laws and regulations pertaining to labor standards insofar as those acts apply to the performance of this Agreement. The SUBRECIPIENT agrees to comply with the Copeland Anti -Kick Back Act (18 U.S.C. 874 et seq.) and its implementing regulations of the U.S. Department of Labor at 29 CFR Part S. The SUBRECIPIENT shall maintain documentation that demonstrates compliance with hour and wage 75B-54 requirements of this part. Such documentation shall be made available to the CITY for review upon request. SUBRECIPIENT agrees that, except with respect to the rehabilitation or construction of residential property containing less than eight (8) units, all contractors engaged under contracts in excess of $2,000.00 for construction, renovation or repair work financed in whole or in part with assistance provided under this contract, shall comply with Federal requirements adopted by the CITY pertaining to such contracts and with the applicable requirements of the regulations of the Department of Labor, under 29 CFR Parts 1, 3, 5 and 7 governing the payment of wages and ratio of apprentices and trainees to journey workers; provided that, if wage rates higher than those required under the regulations are imposed by state or local law, notliing hereunder is intended to relieve the SUBRECIPIENT of its obligation, if any, to require payment of the higher wage. The SUBRECIPIENT shall cause or require to be inserted in full, in all such contracts subject to such regulations, provisions meeting the requirements of this paragraph. V. Section 3 of the Housing and Urban Development Act of 1968. SUBRECIPIENT will make every effort to provide training opportunities for low -and moderate -income persons residing within the community where the construction project is located and contracts awarded to local businesses therein to the greatest extent feasible as required under the provisions of Section 3 of the Housing and Urban Development Act of 1968, the regulations set forth in 24 CFR 135, and all applicable rules and orders issued hereunder prior to the execution of this Agreement. Compliance with the foregoing requirements shall be a condition of the federal financial assistance provided under this Agreement and binding on the SUBRECIPIENT. Failure to fulfill these requirements shall subject the SUBRECIPMNT, its successors and designees, to those sanctions specified by the Agreement through which federal assistance is provided. The SUBRECIPIENT certifies and agrees that no contractual or other disability exists which would prevent compliance with these requirements. SUBRECIP= shall make every effort to ensure that all projects funded wholly or in part by CDBG funds shall provide equal employment opportunities for minorities and women. W. Dine Free Workplace. SUBRECIPIENT agrees to provide a drug -free work place and to execute a certification as set forth in "Exhibit E" attached hereto and incorporated herein by this reference. X. Uniform Administrative Requirements, Cost Principles. and Audit Requirements for Federal Awards. The following requirements and standards must be complied with: 2 CFR Part 200 et al. SUBRECIPIENT shall procure all materials, property, or services in accordance with the requirements of 2 CFR 200.318-326. Y. Subpart K of 24 CFR 570. SUBRECIPIENT will carry out its activities in compliance with the requirements of Subpart K of 24 CFR 570, however SUBRECIPIENT does not assume the CITY's environmental responsibilities or the responsibility for initiating the environmental review process under 24 CFR Part 52. Z. Women- and Minority -Owned Businesses (W/MBE) SUBRECIPIENT will use its best efforts to afford small businesses, minority business enterprises, and women's business enterprises the maximum practicable opportunity to participate in the performance of this Agreement in accordance with the requirements of 2 CFR 200.321 "Contracting with small and minority businesses, women's business enterprises, and labor surplus area firms". As used in this Agreement, the term "small business" means a business that meets the criteria set forth in section 3(a) of the Small Business Act, as amended (15 U.S.C. 632), and "minority and women's business enterprise" means a business at least fifty-one percent (51%) owned and controlled by minority group members or women. For the purpose of this definition, "minority group members" are African -Americans, Spanish-speaking, Spanish surnamed or Spanish - heritage Americans, Asian -Americans, and American Indians. SUBRECIPIENT may rely on written 7 75B-55 representations by businesses regarding their status as minority and female business enterprises in lieu of an independent investigation. IL CITY'S OBLIGATIONS A. Payment of Funds. On July 1, 2019, the CITY was allocated $5,701,154 for fiscal year 2019- 2020 from the United States Department of Housing and Urban Development ("HUD') Community Development Block Grant ("CDBG'� Entitlement Program. CITY agrees to pay to SUBRECIPIENT when, if and to the extent federal funds are received a sum not to exceed Dollars ($00,000) for SUBRECIPIENT'S performance in accordance with the Budget attached hereto as "Exhibit B" during the period of this Agreement. Payments shall be made to SUBRECIPIENT through the submission of invoices/reimbursement requests. CITY shall pay such invoices/reimbursement requests within thirty (30) days after receipt thereof provided CITY is satisfied that such expenses have been incurred and documented within the scope and provisions of thus Agreement and that SUBRECIPIENT is in compliance with the terns and conditions of this Agreement. Failure to provide any of the required documentation and reporting will cause CITY to withhold all or a portion of a request for reimbursement, or return the entire reimbursement package to SUBRECIPIENT, until such documentation and reporting has been received and approved by CITY. Documentation may include, but is not limited to true copies of invoices, receipts, canceled checks, bank statements, credit card statements, procurement documentation for goods or services, timesheets, payroll records, benefit statements, agreements, contracts or documentation pertaining to costs for subcontractors, and/or other documentation supporting and evidencing how the CDBG FUNDS have been expended during the applicable quarter. B. Audit of Account. CITY shall include an audit of the account maintained by SUBRECIPIENT in CITY's annual audit of all CDBG FUNDS in accordance with Title 24 of the Code of Federal Regulations and other applicable federal laws and regulations. C. Common Rule: Pursuant to 2 CFR 200.328(a), the CITY manages the day-to-day operations of each grant and subgrant supported activities. CITY staff has detailed knowledge of the grant program requirements and monitors grant and subgrant supported activities to assure compliance with Federal requirements. Such monitoring covers each program, function and activity and perforiance goals are reviewed periodically. D. Environmental Review: In accordance with 24 CFR 58, the CITY is responsible for undertaking environmental review and maintaining environmental review records for each applicable project. E. Performance Monitorine: CITY shall monitor the performance of SUBRECIPIENT against goals and performance standards required herein. The SUBRECIPIENT shall be responsible to accomplish the levels of performance as set forth in Exhibit A and report such measures quarterly to the CITY. If the SUBRECIPIENT estimates such goals will not be met, the SUBRECIPIENT is to contact the CITY, at which time the CITY will determine if any adjustments to the grant award is appropriate. Substandard performance as determined by the CITY will constitute non-compliance with this Agreement. Should the CITY determine that the SUBRECIPIENT has not performed its obligations as stated in this contract in a satisfactory manner, or if the CITY determines that insufficient supporting information has been submitted, the CITY shall notify the SUBRECIPIENT in writing of its detennination specifying in full detail the objections which it has to the SUBRECIPIENT's performance. If action to correct such substandard performance is not taken by the SUBRECIPIENT after being 75B-56 notified by the CITY, within a reasonable period of time as stipulated in the written notification, contract suspension or termination procedures will be initiated. M. NONDISCRIMINATION A. SUBRECIPIENT agrees to comply with Executive Order 11246 which requires that during the performance of this Agreement, SUBRECIPIENT agrees not to discriminate against any employee or applicant for employment because of race, religion, sex, color or national origin. Such action shall include, but not be limited to the following: employment, upgrading, demotion, or transfer, rates of pay or other forms of compensation, and selection for training, including apprenticeship. SUBRECIPIENT agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the SUBRECIPIENT setting forth the provisions of this nondiscrimination clause. B. SUBRECIPIENT agrees to comply with Title VI of the Civil ]lights Act of 1964 which indicates that no person shall, on the ground of race, color or national origin, be excluded from participation in, be denied the benefits of, or be subject to discrimination under any program of activity receiving federal financial assistance. C. No person shall, on the grounds of race, sex, creed, color, religion, marital status, national origin, age, sexual orientation, or physical or mental handicap be excluded from participation in, be refused the benefits of, or otherwise be subject to discrimination in any activities, programs or employment supported by this Agreement. SUBRECIPIENT is prohibited from discrimination on the basis of age or with respect to an otherwise qualified handicapped person as provided for raider Section 109 of the Housing and Community Development Act of 1974, as amended. D. SUBRECIPIENT agrees to comply with the Age Discrimination Act of 1975 which requires that during the performance of this Agreement, SUBRECIPIENT agrees not to discriminate against any employee or applicant for employment because of age. Such action shall include, but not be limited to the following: employment upgrading, demotion, or transfer, rates of pay or other forms of compensation, and selection for training, including apprenticeship. SUBRECIPIENT agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the SUBRECIPIENT setting forth the provisions of this age discrimination clause. E. SUBRECIPIENT agrees to comply with Section 504 of the Rehabilitation Act of 1973 which requires that no otherwise qualified individual with a disability in the United States, shall, solely by reason of his or her disability, be excluded from the participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving federal financial assistance or under any program or activity conducted by any executive agency or by the United States Postal Service. IV. CONFLICT OF INTEREST Pursuant to the conflict of interest requirements set forth in 24 CFR 570.611 and 2 CFR 200.112, SUBRECIPIENT certifies that no member, officer, employee, agent or assignee of CITY having direct or indirect control of any CDBG monies granted to the CITY, inclusive of the subject CDBG FUNDS, shall serve as an officer of SUBRECIPIENT. Further, any conflict or potential conflict of interest of any officer of SUBRECIPIENT shall be fully disclosed in writing prior to the execution of this Agreement and said writing shall be attached and deemed fully incorporated as a part hereof. Notice shall be sent by SUBRECIPIENT to CITY regarding any changes or modifications to its board of directors and list of officers. 75B-57 V. SPECIAL CERTIFICATION FOR RELIGIOUS ENTITIES If SUBRECIPIENT is a religious entity, SUBRECIPIENT hereby agrees that in connection with the provision of the services SUBRECIPIENT shall provide with CDBG funds, in accordance with 24 CFR 570.2006): A. SUBRECIPIENT shall not discriminate against any employee or applicant for employment on the basis of religion and shall not limit employment or give preference in employment to persons on the basis of religion. B. SUBRECIPIENT shall not discriminate against any person applying for the services SUBRECIPIENT agrees to provide under the terms of this Agreement on the basis of religion and shall not limit such services or give preference to applicants for such services on the basis of religion. C. SUBRECIPIENT shall NOT provide religious instruction or counseling, conduct any religious worship or services, or engage in any religious proselytizing, or exert any religious influence in the provision of the services in said program. The parties agree that this covenant is intended to and shall be construed for the limited purpose of assuring compliance with respect to the use of CITY funds by SUBRECIPIENT with applicable constitutional limitations respecting the establishment of religion as set forth in the establishment clause under the First Amendment of the United States Constitution and Article I, Section 4 of the California Constitution, and is not in any manner intended to restrict other activities of SUBRECIPIENT. D. The portion of a facility used to provide public services assisted in whole or in part under this Agreement shall contain no sectarian or religious symbols. E. Where the services to be provided under said program are rendered on property owned by the primarily religious entity SUBRECIPMNT, CDBG funds may also be used for minor repairs to such property which are directly related to the cost of rendering the services under said program, where the cost constitutes 'in dollar terns only an incidental• portion of the CDBG expenditure for rendering the services under said program. VI. PROHIBITION OF NEPOTISM SUBRECIPIENT agrees not to ]tire or permit the luring of any person to fill a position funded through this Agreement if a member of that persons immediate family is employed in an administrative capacity by SUBRECIPIENT. For the purposes of tlris section, the term "immediate family" means spouse, child, mother, father, brother, sister, brother-in-law, sister-in-law, father-in-law, mother-in-law, son-in-law, daughter-in-law, aunt, uncle, niece, nephew, stepparent and stepchild. The tern "administrative capacity" means having selection, hiring, supervisor or management responsibilities. VII. NOTICES Notices to the parties shall, unless otherwise requested in writing, be sent by U.S. Mail, postage prepaid, and addressed as follows: TO CITY: City of Santa Ana Community Development Agency (M-25) 20 Civic Center Plaza P.O. Box 1988 Santa Ana, California 92702-1988 10 75B-58 TO SUBRECIPIENT: Organization Contact Address Line 1 Address Line 2 Address Line 3 VM. ASSIGNABIIdTY None of the duties of, or work to be performed by, SUBRECIPIENT under this Agreement shall be subcontracted or assigned to any agency, consultant, or person without the prior written consent of CITY. SUBRECIPIENT must submit all subcontracts and other agreements that relate to this Agreement to CITY. No subcontract or assignment shall terminate or alter the legal obligations of SUBRECIPIENT pursuant to this Agreement. IX. HOLD SS SUBRECIPIENT shall indemnify, defend and save harmless CITY, its officers, employees, agents, representatives and volunteers from and against any and all damages to or for loss of use of property and for injuries to or death of any person or persons, including property and employees or agents of CITY, and shall defend, indemnify and save harmless CITY, its officers, employees, agents, representatives and volunteers from and against any and all claims, demands, suits, actions or proceedings of any kind or nature, including, but not by way of limitation, workers compensation claims and including attorney fees and reasonable expenses for litigation or settlement, resulting from or arising out of the negligent or wrongful acts, errors or omissions of SUBRECIPIENT, its officers, directors, employees, agents, subcontractors and suppliers arising out of SUBRECIPIENT's performance of this Agreement. X. INSURANCE 1. Commercial General Liability. SUBRECIPIENT agrees to obtain and keep in force during the term of this Agreement a policy of comprehensive commercial public liability insurance insuring the CITY, and SUBRECIPIENT against any liability for accident, injury or death arising out of or in consequence of this Agreement. Such insurance shall be in an amount not less than One Million Dollars ($1,000,000.00) for any injury to or death of any person or persons in any single accident or occurrence. Said policy of comprehensive liability insurance shall be endorsed to provide to CITY at least thirty (30) days written notice prior to cancellation; name CITY, its officers, agents, employees, and volunteers, additional insured; and state that such coverage is primary to any other coverage or self- insurance and CITY. Governmental entities may provide proof of self-insurance. (a) Such insurance shall: (1) name the City of Santa Ana, its officers, agents, representatives, employees and volunteers as additional insured's; (2) be primary with respect to insurance or self-insurance programs maintained by the CITY; (3) contain standard separation of insured's provisions; and (4) give to CITY prompt and timely notice of claim made or suit instituted arising out of SUBRECIPIENT's operations hereunder. (b) SUBRECIPIENT shall: (1) prior to exercising any right under this Agreement, furnish properly executed certificates of insurance and additional insured endorsement to the CITY which shall clearly evidence all coverages required above; (2) provide that such insurance shall not be materially changed or terminated except on 30 days prior written notice to the CITY; (3) maintain such insurance for the period covered by this Agreement; and (4) replace such certificates for policies expiring prior to the expiration of this Agreement 11 75B-59 2. Automobile Liability Coverage. SUBRECIPIENT shall also obtain and maintain, during the effective period of this Agreement, broad form automobile liability coverage with a $1,000,000 limit unless reduced by CITY, which applies to both owned/leased and non -owned automobiles used by SUBRECIPIENT employees or participants in performance of this Agreement, or, in the event that SUBRECIPIENT will not utilize such owned/leased automobiles but intends to require employees, participants or other agents to utilize their own automobiles in the performance of this Agreement, SUBRECIPIENT shall secure and maintain on file from all such employees, participants, or agents as self -certification of automobile insurance coverage. Governmental entities may provide proof of self- insurance. 3. Workers' Compensation. If SUBRECIPIENT is an "employer", as set forth in California Labor Code Section 3300 et seq., or utilizes participants as "employees," as set forth in California Labor Code Section 3350 et seq., SUBRECIPIENT shall obtain and keep in force during the term of this Agreement full Workers' Compensation insurance coverage for injuries suffered by participants. Said insurance policy shall guarantee CITY at least thirty (30) days written notice of cancellation or modification. 4. Equipment Coverage. SUBRECIPIENT shall purchase a policy or policies of insurance covering loss or damage to any and all Equipment provided to or purchased by SUBRECIPIENT in accordance with this Agreement. Said insurance shall be in the amount of the full replacement value thereof, providing protection against the classification of fire, extended coverage, vandalism, malicious mischief, theft, and special extended perils. Governmental entities may substitute a certificate of self- insurance. 5. Proof of Insurance. Certificates and endorsements must be submitted and approved by CITY prior to any work under this Agreement. SUBRECIPIENT understands that CITY will make no payments under this Agreement until the required certificates and endorsements have been approved by CITY. XI. REVERSION OF ASSETS A. Upon the expiration of this Agreement, SUBRECIPIENT shall transfer to CITY any CDBG funds on hand at the time of the expiration of this Agreement as well as any accounts receivable attributable to the use of CDBG funds. [24 CFR 570.503(b)(7)] B. Any real property under SUBRECIPIENT's control that was acquired or improved in whole or in part with CDBG funds in excess of $25,000.00 must either be: 1. Used, where CITY has given written approval, to meet one of the national objectives stated in 24 CFR 570.208 until five (5) years after expiration of this Agreement, or for such longer period of time as determined to be appropriate by CITY; or 2. If not used in accordance with subparagraph i above, SUBRECIPIENT shall pay to CITY an amount equal to the current fair market value of the property less any portion of the value attributable to the expenditure of non-CDBG funds for acquisition of, or improvement to, the property. Such payment is program income to CITY. C. Subject to the obligations set forth herein, title to equipment acquired under the terms of this Agreement will vest upon acquisition in SUBRECIPIENT. When said equipment which has been acquired in accordance with tlus Agreement and all applicable regulations is no longer needed for said program, disposition of said equipment will be made as follows: 12 75B-60 1. Items of equipment with a current per unit fair market value of less than $5,000.00 may be retained, sold or otherwise disposed of with no further obligation to CITY. 2. Items of equipment with a current fair market per unit value of $5,000.00 or more may be retained or sold and CITY shall have the right to an amount calculated by multiplying the current market value or proceeds from the sale by CITY's share of federal funds used to acquire the equipment, in accordance with 2 CFR 200.313(e)(2). D. SUBRECIPIENT hereby agrees, upon the demand of CITY, to execute, acknowledge and deliver, or cause any person or entity who may have any claim to rights hereunder or under any document, instrument or agreement executed in furtherance of the services and activities to be performed hereunder, to execute, acknowledge and deliver, to CITY assignment(s), quit claim deed(s) or such other and further instruments, documents and agreements as may be necessary, in the sole and absolute discretion of CITY, to vest in CITY all of SUBRECIPIENTs right, title and interest (if any it may have) in and to CITY, CDBG or other federal, state and/or local accounts or program funds or allocation of funds to which CITY is or may be entitled, either for its own account or as fiduciary or trustee for others, which were obtained for the purpose of the performance of this Agreement or any previous agreements relating to the same subject matter or activities as tlds Agreement, together with any instruments, loans, grants or advances by SUBRECIPIENT on behalf of CITY, in furtherance of the activities hereunder or thereof. SUBRECIPIENI"s obligations and responsibilities set forth in this paragraph "XI. REVERSION OF ASSETS." and in paragraph "XII. TERMINATION" and other requirements pertaining to program income shall not be affected by the termination of this Agreement and shall survive the date of termination of tlds Agreement for such period of time as CITY and/or HUD deems necessary for the responsibilities, duties and obligations to be performed and completed to the satisfaction of CITY and HUD. XII. TERMINATION A. This Agreement maybe terminated on thirty (30) days' written notice by either party. In the event of such termination, SUBRECIPIENT shall only be entitled to reimbursement for approved expenses incurred to the effective date of termination. B. This Agreement may be suspended or terminated by CITY upon five (5) days' written notice for violation by SUBRECIPIENT of Federal Laws governing the use of Community Development Block Grant Funds. In the event of such suspension or termination, SUBRECIPIENT shall only be entitled to reimbursement for approved expenses incurred up to the effective date of suspension or termination. C. Pursuant to 2 CFR 200.340, in the event SUBRECIPIENT defaults by failing to fulfill all or any of its obligations hereunder, CITY may declare a default and termination of this Agreement by written notice to SUBRECIPIENT, which default and termination shall be effective on a date stated in the notice wldch is to be not less than ten (10) days after certified trailing or personal service of such notice, unless such default is cured before the effective date of termination stated in such notice. If terminated for cause, CITY shall be relieved of further liability or responsibility under this Agreement, or as a result of the termination thereof, including the payment of money, except for payment for approved expenses incurred for services satisfactorily and thnely performed prior to the mailing or service of the notice of termination, and except for reimbursement of (1) any payments made for services not subsequently performed in a timely and satisfactory manner, and (2) costs incurred by CITY in obtaining substitute performance. D. The grant of funds under this Agreement may be terminated for convenience by either the CITY or SUBRECIPIENT, in whole or in part, by setting forth the reasons for such termination, the effective date, and, in the case of portion termination, their portion to b terminated, however, if in the case of a partial 13 75B-61 tennination, the CITY determines that the remaining portion of the award will not accomplish the purpose for with the award was made, the CITY may terminate the award in its entirety. E. The grant of funds under this Agreement may be terminated due to the non-performance of SUBRECIPIENT and/or failure of SUBRECIPENT to perform the work described in Exhibits A and B or failure to meet the performance standards and program goals set forth therein. F. In the event this Agreement is terminated as set forth in subparagraphs XII.A. through XII.E., inclusive, SUBRECIPIENT agrees to immediately return to CITY upon CITY's demand and prior to any adjudication of SUBRECIPIENT's rights, any and all funds not used, and to comply with paragraph "XI. REVERSION OF ASSETS" of this Agreement. XIH. LBMATION OF FUNDS The United States of America, through HUD, may in the future place programmatic or fiscal limitations on the use of CDBG funds which limitations are not presently anticipated. Accordingly, CITY reserves the right to revise this Agreement in order to take account of actions affecting HUD program funding. In the event of funding reduction, CITY may, in its sole and absolute discretion, reduce the budget of this Agreement as a whole or as to costs category, may limit the rate of SUBRECIPIENT's authority to commit and spend funds, or may restrict SUBRECIPIENTs use of both its uncommitted and its unspent funds. Where HUD has directed or requested CITY to implement a reduction in funding, in whole or as to a cost category, with respect to funding for this Agreement, CITY s City Manager or delegate is authorized to act for CITY in implementing and effecting such a reduction and in revising, modifying, or amending the Agreement for such purposes. If such a reduction in funding occurs, SUBRECIPIENT shall be permitted to de -scope accordingly. Where CITY has reasonable grounds to question SUBRECIPIENTs fiscal accountability, financial soundness, or compliance with this Agreement, CITY may suspend the operation of this Agreement for up to sixty (60) days upon five (5) days written notice to SUBRECIPIENT of its intention to so act, pending an audit or other resolution of such questions. In no event, however, shall any revisions made by CITY affect expenditures and legally binding commitments made by SUBRECIPIENT before it received notice of such revision, provided that such amounts have been committed in good faith and are otherwise allowable and that such commitments are consistent with HUD cash withdrawal guidelines. XIV. EXCLUSIVITY AND AMENDMENT OF AGREEMENT This Agreement supersedes any and all other agreements, either oral or in writing, between the parties hereto with respect to the use of CITY's CDBG funds by SUBRECIPIENT and contains all the covenants and agreements between the parties with respect to such employment in any manner whatsoever. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that no other agreement or amendment hereto shall be effective uruess executed in writing and signed by both CITY and SUBRECIPIENT. XV. LAWS GOVERNING THIS AGREEMENT This Agreement shall be governed by and construed in accordance with the laws of the State of California, and all applicable federal laws and regulations. XVI. CLOSE-OUT 14 75B-62 The SUBRECIPIENT agrees to comply with the closeout procedures detailed in 2 CFR §200.343, including the following: 1. SUBRECIPIENT must submit, no later than ninety (90) calendar days after the end date of the period of performance, all financial, performance, and other reports as required by the terms and conditions of the Federal award; 2. Unless the CITY authorizes an extension, SUBRECIPIENT must liquidate all obligations incurred under the Federal award not later than ninety (90) calendar days after the end date of the period of performance as specified in the terms and conditions of the Federal award; 3. SUBRECIPIENT must promptly refund any balances of unobligated cash that the CITY paid in advance or paid and that is not authorized to be retained by SUBRECIPIENT for use in other projects (See OMB Circular A-129 and 2 CFR §200.345); 4. SUBRECIPIENT must account for any real and personal property acquired with Federal funds or received from the Federal government in accordance with 2 CFR §§200.310- 200.316 and 200.329; and, 5. The CITY should complete all closeout actions for the Federal award no later than one year after receipt and acceptance of all required final reports. XVIS. VALIDITY AND SEVERABILITY The invalidity in whole or in pat of any provision of this Agreement shall not void or affect the validity of any other provision of this Agreement. Whenever possible, each provision of this AGREEMENT shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this AGREEMENT is held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions of this AGREEMENT. XVM. WAIVER No delay or omission by either party hereto to exercise any right or power accruing upon any noncompliance or default by the other party with respect to any of the terms of this Agreement shall impair any such right or power or be construed to be a waiver thereof. A waiver by either of the parties hereto of any of the covenants, conditions, or agreements to be performed by the other shall not be construed to be a waiver of any succeeding breach thereof or of any other covenant, condition or agreement herein contained. XIX. MISCELLANEOUS PROVISIONS a. Each undersigned represents and warrants that its signature herein below has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify CITY fully, including reasonable costs and attorney's fees, for any injuries or damages to CITY in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. 15 75B-63 b. All Exhibits and Attachments referenced herein and attached hereto shall be incorporated as if fully set forth in the body of this Agreement. (Signahaes on following page) 16 75B-64 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the last date and year written below. ATTEST: NORMA MITRE Acting Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO RECOMMENDED FOR APPROVAL: STEVEN MENDOZA Executive Director Community Development Agency 17 CITY OF SANTA ANA KRISTINE RIDGE City Manager NAME Title Tax ID: 00-0000000 DUNS #: 000000000 75B-65 City of Santa Ana CDBG Scope of Work Program Year 2019-20 (July 1, 2019 - June 30, 2020) Name of Organization Organization Name Name of Funded Program Program Name Annual Accomplishment Goal Undu licated Participants antici ated to be served Burin the 12-month contract period. 1 TOTAL I Santa Ana Participants 1 0%1 1 1 Low Income Participant 0% Schedule of Performance Unduplicated Estimated (estimated) Participants Invoicing Quarter 1: JUL 1 - SEP 30 Quarter 2: OCT 1 - DEC 31 Quarter 3: JAN 1 - MAR 31 Quarter4: APR 1 -JUN 30 0 $ Program and Funding Description -1T66 Organization Name Organization Name Program Name Program Name FISCAL YEAR 2019-2020 PROGRAM BUDGET EXPENDITURES Enter budget categories and projected expenditures for the proposed program: Category Expenditures Funded By Santa Ana CDBG Expenditures Funded By Other Sources Program Budget Total Organization Budget Administrative Staff Salaries $0 $0 Program Staff Salaries $0 $0 . . Contractual/Professional Services $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 _ $0 0 $0 $0 0 $0 $0 TOTAL Direct Costs $0 $0 $0 $0 Indirect Costs 10% $0 $0 TOTAL BUDGET $0 $0 $0 $0 ' Indirect cost rate: 10% Non -Federal entity without federaly recognized negotiated indirect cost rate, will charge a de minimis rate of 10% of modified total direct costs. PROGRAM RESOURCES LIST ALL OTHER PROGRAM RESOURCES FOR 2019-2020 Funding Source Total must equal Program Budget Total listed above. FUNDING SOURCE AMOUNT Santa Ana CDBG TOTAL $ / 167 I r 2019-2020 CDBG BUDGET LINE ITEMS ADMINISTRATIVE STAFF Position Title Annual Salary CDBG Funds Requested Description PROGRAM STAFF Annual Salary CDBG Funds Position Title Requested Description CONTRACTUAL/PROFESSIONAL SERVICES Type of Service Contract Amount CDBG Funds Requested Description OTHER LINE ITEMS Line Item Program Amount CDBG Funds Requested Description Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion Lower Tier Covered Transactions This certification is required by the regulations implementing Executive Order 12549, Debarment and Suspension, 29 CFR Part 98, Section 98.510, Participants' responsibilities. The regulations were published as Part VII of the May 26,1988 Federal Register (pages 19160-19211). (BEFORE COMPLETING CERTIFICATION, READ INSTRUCTIONS FOR CERTIFICATION - Attached) (1) The prospective recipient of federal assistance funds certifies, by submission of this proposal, that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any federal department or agency. (2) Where the prospective recipient of federal assistance funds is unable to certify to any of the statements in this certification, such prospective participant shall attach an explanation to this proposal. Name and Title of Authorized Representative Signature Date EXHIBIT C Page 1 of 2 75B-69 INSTRUCTIONS FOR CERTIFICATION By signing and submitting this proposal, the prospective recipient of federal assistance funds is providing the certification as set out below. 2. The certification in this clause is a material representation of fact upon which reliance was placed when this transaction was entered into. If it is later determined that the prospective recipient of federal assistance funds knowingly rendered an erroneous certification, in addition to other remedies available to the Federal Government, the Department of Labor (DOL) may pursue available remedies, including suspension and/or debarment. 3. The prospective recipient of federal assistance funds shall provide immediate written notice to the person to which this proposal is submitted if at any time the prospective recipient of federal assistance funds learns that its certification was erroneous when submitted or has become erroneous by reason of changed circumstances. 4. The terns 'covered transaction," "debarred," "suspended," 'ineligible," "lower tier covered transaction," "participant" "person," "primary covered transaction," "principal," "proposal," and "voluntarily excluded," as used in this clause, have the meanings set out in the Definitions and Coverage sections of rules implementing Executive Order 12549. You may contact the person to which this proposal is submitted for assistance in obtaining a copy of those regulations. 5. The prospective recipient of federal assistance funds agrees by submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the DOL. 6. The prospective recipient of federal assistance funds further agrees by submitting this proposal that it will include the clause titled "Certification Regarding Debarment, Suspension, Ineligibility and voluntary exclusion - Lower Tier Covered Transactions," without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions. 7. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that it is not debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. A participant may decide the method and frequency by which it determines the eligibility of its principals. Each participant may, but is not required to check the List of Parties Excluded from Procurement or Non - Procurement Programs. 8. Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render in good faith the certification required by this clause. The knowledge and information of a participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings. 9. Except for transactions authorized under paragraph 5 of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Govermnent, the DOL may pursue available remedies, including suspension and/or debarment. EXHIBIT C Page 2 of 2 75B-70 Certification Regarding Lobbying Certification for Contracts, Grants, Loans, and Cooperative Agreements The undersigned certifies, to the best of his or her knowledge and belief, that: (1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contact, grant, loan or cooperative agreement. (2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. (3) The undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontract, subgrants, and contracts under pants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, U. S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. Grantee/Contactor Organization Program Title Name of Certifying Officer Signature Date EXHIBIT D Pagel of 2 75B-71 SUBRECIPIENT warrants the following: 1. SUBRECIPIENT will comply with Public Law 88-352, Title VI of the Civil Rights Act of 1964 (42 U. S. C. section 2000 et seq.) and implementing regulation in 24 CFR Part 1. 2. No person in the United States shall on the ground of race, color, religion, national origin, or sex, be excluded from participation in, or be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with community development funds trade available pursuant to the ACT. 3. All laborers and mechanics, employed by contractors or subcontractors in the performance of construction work financed in whole or in part with community development funds shall be paid wages at rates not less than those prevailing on similar construction in the locality as determined in accordance with the Davis -Bacon Act, as amended, 40 U. S. C. Sections 276 a 1-5, except for individuals who perform services for which they volunteered; do not receive compensation for such services; or are paid expenses, reasonable benefits, or a nominal fee for such services; and are not otherwise employed at any time in construction work. 4. SUBRECIPIENT will comply with all Federal statutes applicable to projects funded with community development funds, except that (a) SUBRECIPIENT does not assume CITY'S environmental responsibilities described at 24 CFR 570.604; and (b) SUBRECIPIENT does not assume CITY'S responsibility for initiating the review process under Executive Order 12372. EXHIBIT D Page 2 of 2 75B-72 Certification Regarding Drug -Free Workplace Requirements The certification set out below is a material representation upon which reliance is placed by the U.S. Department of Housing and Urban Development in awarding the grant. If it is later determined that the contractor knowingly rendered a false certification, or otherwise violates the requirements of the Drug -Free Workplace Act, the U.S. Department of Housing and Urban Development, in addition to any other remedies available to the Federal Government, may take action authorized under the Drug -Free Workplace Act. CERTIFICATION A. The contractor certifies that it will provide a drug -free workplace by: (a) Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession or use of a controlled substance is prohibited in the contractor's workplace and specifying the actions that will be taken against employees for violation of such prohibition; (b) Establishing a drug -free awareness program to inform employees about — (1) The dangers of drug abuse in the workplace; (2) The contractor's policy of maintaining a drug -free workplace; (3) Any available drug counseling, rehabilitation, and employee assistance program; and (4) The penalties that maybe imposed upon employees for drug abuse violations occurring in the workplace; (c) Making it a requirement that each employee who will be engaged in the performance of the grant be given a copy of the statement required by paragraph (a); (d) Notifying the employee in the statement required by paragraph -(a) that, as a condition of employment under the contract, the employee will - (1) Abide by the terms of the statement; and (2) Notify the employer of any criminal drug statute conviction for a violation occurring in the workplace no later than five days after such conviction. (e) Notifying the U.S. Department of Housing and Urban Development within ten days after receiving notice under subparagraph (d)(2) from an employee or otherwise receiving actual notice of such conviction; EXHIBIT E Page 1 of 3 75B-73 (f) Taking one of the following actions, within 30 days of receiving notice under subparagraph (d)(2), with respect to any employee who is so convicted - ( 1) Taking appropriate personnel action against such an employee, up to and including termination; or (2) Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency; (g) Making a good faith effort to continue to maintain a drug -free workplace through implementation of paragraphs (a), (b), (c), (d), (a) and (f). B. The contractor shall insert in the space provided on the attached 'Place of Performance" form the site(s) for the performance of work to be carried out with the grant funds (including street address, city, county, state, and zip code) .the contractor further certifies that, if it is subsequently determined that additional sites will be used for the performance of work under the contract, it shall notify the U.S. Department of Housing and Urban Development immediately upon the decision to use such additional sites by submitting a revised "Place of Performance" form. Organization Authorized Signature Date EXHIBIT E Page 2 of 3 75B-74 PLACE OF PERFORMANCE FOR CERTIFICATION REGARDING DRUG -FREE WORKPLACE REQUIREMENTS Name: Date: The Contractor shall insert in the space provided below the site(s) expected to be used for the performance of work under the contract covered by the certification: Place of Performance (include street address, city, county, state, zip code for each site): EXHIBIT E Page 3 of 3 75B-75 75B-76 EXHIBIT 6 Memorandum of Understanding (MOU) between SUBRECIPIEIVT: and The City of Santa Ana W/O/RIK Center 1. PARTIES: The parties to this Memorandum of Understanding (MOU) are Subrecipient name ("Subrecipient") and the City of Santa Ana W/O/R/K Center ("Work Center"). 2. PURPOSE: The Work Center, in conjunction with Subrecipient, endeavors to establish a cooperative working relationship between the parties in order to provide program beneficiaries with information about Work Center opportunities to find better jobs and careers. The MOU serves to establish the framework for providing services to employees, job seekers and others needing workforce services. The goal is to ensure that all program beneficiaries have been provided an opportunity to connect with the Work Center and be assisted with the tools and knowledge necessary to enter the workforce or obtain a higher- payingjob. 3. RESPONSIBILITIES: A) The Work Center shall perform the following: 1) Accept referrals to the Work Center. B) Subrecipient shall perform the following: 1) Provide Work Center information to participants and their families; and, 2) Refer participants in need of employment, training, or career counseling to the Work Center utilizing the referral form attached hereto as Attachment 1 and incorporated herein by reference. 4. DURATION: This MOU shall commence on July 1, 2019, and shall remain in effect through June 30, 2020. 5. AMENDMENTS: Either party may propose amendments to this MOU at any time by providing written notice to the other party. Amendments to this MOU shall require the approval of the City Manager, or her/his designee ("City Manager"), on behalf of the Work Center. 6. CONFIDENTIALITY: If Subrecipient receives information, which due to the nature of such information is reasonably understood to be confidential and/or proprietary, such information shall not be used or disclosed except in the performance of this MOU, and Subrecipient agrees to exercise the same degree of care it uses to protect its own information of like importance, but in no event less than reasonable care. "Confidential Information" shall include all non-public information. Confidential information includes not only written 75B-77 information, but also information transferred orally, visually, electronically, or by other means. Confidential information disclosed to either party by any subsidiary and/or agent of the other party is covered by this MOU. The foregoing obligations of non-use and nondisclosure shall not apply to any information that (a) has been disclosed in publicly available sources; (b) is, through no fault of Subrecipient disclosed in a publicly available source; (c) is in rightful possession of Subrecipient without an obligation of confidentiality; (d) is required to be disclosed by operation of law; or (e) is independently developed by Subrecipient without reference to information disclosed by the City of Santa Ana, 7. ACCESSABILITY: Subrecipient will assure that its services and premises are accessible to persons with disabilities pursuant to the requirements of the Americans with Disabilities Act. 8. HOLD HARMLESS CLAUSE: Each party to this MOU agrees to indemnify and hold harmless the other parties, their officers, agents, employees, and volunteers from and against any and all loss or damage, and from any and all suits, actions and claims filed or brought by any person or persons arising out of acts or omissions of the party or its officers, agents, employees or volunteers in the performance of this MOU. 9. DISPUTES: The parties shall first attempt to resolve all disputes informally. Any party may call a meeting of all parties to discuss and resolve disputes. Should informal resolution efforts fail, the dispute shall be referred to the City Manager to act as mediator, to attempt to resolve the dispute by holding an informal hearing with presentations by both parties. If the City Manager's resolution efforts fail, any party may file a grievance with the City Manager for review and hearing. The parties agree to be bound by the final determination resulting fi-om that procedure. Each party to bear its own costs associated with any grievance procedures. 10. DISCRIMINATION: Subrecipient shall not discriminate because of race, color, creed, religion, sex, marital status, sexual orientation, age, national origin, ancestry, or disability, as defined and prolubited by applicable law, in the recruitment, selection, training, utilization, promotion, termination or other employment related activities. Subrecipient affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 11. SEVERABILITY: If any part of this MOU is found to be null and void, or is otherwise stricken, the rest of this MOU shall remain in force. 12. JURISDICTION: Jurisdiction over any disputes arising under this MOU shall reside in Orange County, California. 13. AUTHORITY AND SIGNATURES: The individuals signing this MOU or its attachments have the authority to commit the party they represent to the terms of this MOU, and do so commit by signing. 75B-78 IN WITNESS WHEREOF, the parties hereto have executed tlus Agreement as of the last date and year written below. ATTEST: NORMA MITRE Acting Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO RECOMAIENDED FOR APPROVAL: STEVEN MENDOZA Executive Director Community Development Agency CARLOS DE LA RIVA CENTER DIRECTOR Santa Ana WORK Center CITY OF SANTA ANA KRISTINE RIDGE City Manager SUBRECIPIENT: NAME Title Tax ID: 00-0000000 DUNS #: 000000000 17 75B-79 SANTA ANA WORK CENTER Referral Form My Next Move a Whether you are looking for A JOB or to LEARN A NEW SKILL, the WORK Center can help! • Find a Job • Upgrade Skills • Get Career Counseling • Access to Community Services Attend the My Next Move Workshop and connect with us! Workshops take place on Tuesdays at 9:30AM to 10:30AM (English) and 2:0013M to 3:0013M (Spanish). Name: Referring Organization: Workshop Date: Time: Santa Ana WORK Center ♦ 801 West Civic Center, Santa Ana, CA 92701 714-565-2600 ATTACHMENT 75B-80 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JUNE 4, 2019 TITLE: PUBLIC HEARING - APPROVE THE FISCAL YEAR 2019 - 2020 ANNUAL ACTION PLAN FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM, HOME INVESTMENT PARTNERSHIPS PROGRAM, AND EMERGENCY SOLUTIONS GRANTS PROGRAM; AND AUTHORIZE SUBMISSION TO HOUSING AND URBAN DEVELOPMENT (STRATEGIC PLAN NO. 5, 1) CITY TANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on Is' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO .IIIN 1 01019 FILE NUMBER Approve the Fiscal Year 2019 - 2020 Annual Action Plan. Authorize the submission of the Fiscal Year 2019 - 2020 Annual Action Plan to the United States Department of Housing and Urban Development and designate the Community Development Agency Executive Director as the Certifying Official authorized to execute all documents related to the administration, management and implementation of the CDBG, HOME and ESG Programs. COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION At a Regular Meeting on March 27, 2019, the Community Redevelopment and Housing Commission (CRHC) recommended that the City Council approve the FY 2019-20 Annual Action Plan and authorize submission of the FY 2019-20 Annual Action Plan to the United States Department of Housing and Urban Development by a vote of 9:0. DISCUSSION Each year, the City of Santa Ana receives funding from various formula grant allocation programs administered by the United States Department of Housing and Urban Development (HUD). These federal grant funds provide valuable services to the community for affordable and supportive housing, community development, public services, and economic development. The programs 75C-1 Fiscal Year 2019 - 2020 Annual Action Plan June 4, 2019 Page 2 include the Community Development Block Grant Program (CDBG), HOME Investment Partnerships Program (HOME), and Emergency Solutions Grants Program (ESG). Every five years, the City must submit to HUD its Five -Year Consolidated Plan, a five-year comprehensive planning document and application for all of these programs. It describes our strategies to meet the needs of the community and identifies resources and programs that can be used to address them. In May of 2015, the Five -Year Consolidated Plan for the period of July 1, 2015 to June 30, 2020 was submitted to HUD. As part of this planning process, the City is required to submit an Annual Action Plan to achieve the goals in the Five -Year Consolidated Plan. This document establishes a one-year investment plan that outlines the intended use of resources in the forthcoming fiscal year. The proposed Annual Action Plan covers FY 2019-20 and seeks to allocate funding in neighborhoods where programs and resources will have the maximum impact. During FY 2019-20, the City anticipates receiving the following formula grant allocations: Program Allocation CDBG $5,701,154 HOME $1,704,254 ESG $493,582 TOTAL $7,898,990 The programs covered under the Consolidated and Annual Action Plans are intended to serve low-income residents. These programs allow for funds to be used for the development of affordable housing, street improvements, park and public facilities improvements, economic development, code enforcement, public services, the expansion and retention of businesses, and for the delivery of services for individuals experiencing homelessness. The proposed Annual Action Plan for the CDBG and ESG Programs includes funding for community based organizations and the details for those recommendations is included in two separate staff reports. The proposed Annual Action Plan for the HOME program is described in this staff report. The HOME program provides funding to implement local housing strategies designed to increase homeownership and affordable housing opportunities for low and very low-income households. Proposed activities include site acquisition, site improvements, new construction and rehabilitation of existing multi -family properties for the purpose of developing affordable housing for low, very low and extremely low-income households in the City of Santa Ana. Available funds will be included in a Request for Proposals for Affordable Housing Development per the City's adopted Affordable Housing Funds Policies and Procedures. The federal regulations for HUD require that the draft Annual Action Plan be made available for a 30-day public review and comment period. On March 11, 2019, a public notice was published in the Orange County Register that the draft Annual Action Plan was available for review beginning March 27, 2019, and that a public hearing would be held on March 27, 2019. It was also noticed in La Opinion in Spanish and Nguoi Viet in Vietnamese. The 30-day public comment period 75C-2 Fiscal Year 2019 - 2020 Annual Action Plan June 4, 2019 Page 3 concluded on April 27, 2019. All comments received, including all funding recommendations made by the Community Redevelopment and Housing Commission and City Council, will be included in the final document. STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #5 - Community Health, Livability, Engagement & Sustainability, Objective #1 (Establish a comprehensive community engagement initiative to expand access to information and create opportunities for discussing public policy and setting priorities). FISCAL IMPACT There is no fiscal impact associated with this action. Steven A. Mendoza Executive Director Community Development Agency Exhibit: 1. FY 2019-20 Annual Action Plan stakeholders to play an active role in 75C-3 75C-4 EXHIBIT 1 CITY OF SANTA ANA JULY 19 2019 - JUNE 309 2020 ANNUAL ACTION 75C-5 Table of Contents AP-05 Executive Summary .......................................................................... Page 1 PR-05 Lead & Responsible Agencies.......................................................... Page 5 AP-10 Consultation...................................................................................... Page 6 AP-12 Participation...................................................................................... Page 10 AP-15 Expected Resources......................................................................... Page 14 AP-20Annual Goals and Objectives............................................................ Page 19 AP-35 Projects Introduction......................................................................... Page 23 AP-38 Projects Summary ......................................................... ......... Page 25 AP-50 Geographic Distribution..................................................................... Page 35 AP-55 Affordable Housing............................................................................ Page 37 AP-60 Public Housing.................................................................................. Page 40 AP-65 Homeless and Other Special Needs Activities .................................. Page 41 AP-75 Barriers to Affordable Housing.......................................................... Page 45 AP-85 Other Actions.................................................................................... Page 47 AP-90 Program Specific Requirements........................................................ Page 51 Attachments Public Notices 75C-6 Executive Summary AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b) 1. Introduction The Annual Plan outlines housing, community and economic and projects that will be undertaken by the City of Santa Ana the U.S. Department of Housing and Urban Development (Hi receives an annual share of federal Community Develo,li�m q,� (ESG) and HOME Program funds. In order to receive tIjEEn < W gnt needs, priorities, strategies, 'unds that the City receives from entitlement jurisdiction, the City i t (CDBG,) Emergency Solutions r l&itymustsubmita Consolidated Plan to HUD every five years and anfA t�hiraI Action Plan everM'er�, The funds are intended to provide low- to moderate -income households i h^affordable housing, a hdA t-' and safe living -r environment, and expanded economic opportunities.' EII ible a ivi, igs include comity facilities and improvements, housing rehabilitationah?i-_r�eservation,r< ;entactivities,publi�@rvices, economic development, planning, and f gig` :administrati3 2. Summarize This could be a location. It mat The City`"nta Ana's miss o s with our co ri rt pity which ensU 3 for our youtigh quality The Strategic Plan pi address community a series of City goals • Community Safety • Youth, Education, Recreation Plan table listedy7sewhere.in the plan or a reference to -another I1€grt�s fromlehousing and homeless needs assessment, the 1119 . 5f4'p,s�serts, "To deliver efficient public services in partnership 11ic sfe jay, a prosperous economic environment, opportunities x A:+ for residents." and programs that focus on Santa Ana's mission statement, I also HUD's statutory goals. Related to this mission statement are • Economic Development ■ City Financial Stability • Community Health, Livability, Engagement and Sustainability • Community Facilities and Infrastructure Annual Action Plan 2019 fl OMB Control No: 2506-0117(exp. 06/3012018) 75C_7 • Team Santa Ana The City has various needs. The principle needs are: 1) affordable housing through production, rehabilitation/repair, and financial assistance; 2) public improvements to improve neighborhoods, 3) housing for persons with special needs; 4) assistance for individuals experiencing homelessness, including housing, services and homelessness prevention; 5) community and public services especially for youth, the elderly, homeless, and persons with disabilities; 6) economic development and anti- poverty programs focused primarily upon job training and career preparation; 7) public facility and infrastructure improvements centered upon accessibility improvements; and 8) code enforcement. The strategies described herein establish Santa Ana's prioritie; fq� ssisting low- to moderate -income I . families and neighborhoods with funds made available thr{`GJF fhe'olidated Plan. The affordable '' housing and development needs of a community signj`j duly outweighN fr resources available to address those needs. Therefore, it is necessaryff6C' togQbrtthe the use of availjg funds to the highest and best use to meet the most pressing needs for aa@le housing, individuals gWeTiencing homelessness, persons with special needs, and over"' munity lavelopment�? The priorities were selected based on kJ, w and analyslF, 'Information summarized in the Consolidated Plan/Annual Plan, followine`cmunity paratlon process, consultations, the needs assessment, and housing market analysis S at g es e esigneIEc eet the highest priority needs that are based on past perf f once anes s SfVftVunit ftth similar programs. Only d§ projects that clearly deLjj4r�5tratftcapaaty toervg hrjorit a below will receive funding through the Consoliddt tj Ian/Annbd) lan. ss? The majority o & activitild— e ss&Q& gd eased on Migibility and need. All organizations requesting CDBG furjd f fpti i grvices ro-- gh a fo ma applic�tLpn process, must demonstrate that the activity benefit 16vo�� and modeitat ti�ncom MI) personsAlnu.organizations requesting ESG funds also applied through of rmaI applicatwn process hey were each judged on their ability to carry out the require program wl tth proved Assistance to homeless individuals and families. 3. Evaluation of This is an evaluation of past performance that helped lead the grantee to choose its goals or projects. The City has used the resources provided by HUD to the best of its ability and has been successful in meeting HUD's objectives over the preceding years. Components of the City's system of care carried out during the report period included outreach, supportive services, homelessness prevention, emergency shelter, transitional housing, and access to Annual Action Plan 2019 2 OMB Control No: 2506-0117 (exp. 06/30/2018) 75C-8 permanent housing. The needs of individuals experiencing homelessness with special needs (e.g., victims of domestic violence, Veteran's, and chronic homeless) were also addressed by the County's CoC system. These program efforts helped address priority needs Identified in the City's Annual Plan. Various programs, Including the Workforce Innovation and Opportunity Act resources, addressed employment training and job placement needs. The State designated Enterprise Zone and the City's business attraction and retention programs also provided economic opportunities to residents. In order to meet the changing needs of the community, the City su orted public services and public 'Rw facility improvement projects. Public services for lower income yyO-D- ty(� 2nd seniors help stabilize households by providing services such as recreation and nu tr�tlq,�]&grams. The City recognizes that the City's annual entitlement all of its needs and therefore seeks to maximize coari organizations to make the best use of these limitd resources is critical to achieving the City's goals. The t can match the City's investment of CDBG, HOME, and additional funds are soughtto ensure tha s? e affor activities are available for those in need "" 4. Summary Summary from citizen p of f&mula all'61 ions are not sufficient to meet on and cooperit' among agencies and Also, the City reca ' es that leveraging ontinue Ito cultivate f Tiding partners who P o '"zzzBonds. The nee, alns great, and ;Irlg and important programs and process The City lb`ys dive s: ;inethod's'So encouragezfft(ijng participation from residents, community service �ylders, and exlstf Viand pole llal communitydevelopment partners. The participation t.� �,z �3r P P p p process fo th Annual Plan inb(Q' ed puni thotices; a 30-day public comment period; public hearings; and cons It with non -profits; City staff; 5 housing providers. The draft report wa3''O.Alished onl rje and hard copies were available for public review. The 2019 Action 5-�"za• Plan went before the C1 1 -,3 ty;1.fluncjftPflnal approval. S. Summary of public comments This could be a brief narrative summary or reference an attached document from the Citizen Participation section of the Con Plan. Annual Action Plan 2019 3 OMB Control No: 2505-0117(ezp. 06/30/2018) 75C-9 The City was prepared to receive all comments that were offered and to integrate them in the Annual Action Plan. 6. Summary of comments or views not accepted and the reasons for not accepting them All comments received were accepted. Annual Action Plan 2019 4 OMB Control No: 2506-0117 (exp. 06/30/2018) 75C-10 s cu 41 < < r_ CD E (U E cu E (U E 0. 2 R CL 2CL CL . w . C) 0 0 z F< F< z z z V) V) w 0 _0 V, Y T E E .0 < < E w LU a M < ca 0 'R 0 fC nd 0 u 0 in cri 0 N 75C-1 1 AP-10 Consultation — 91.100, 91.200(b), 91.215(I) 1. Introduction The United States Department of Housing and Urban Development (HUD) now requires that entitlement jurisdictions submit the Annual Action Plan and the Five -Year Consolidated Plan through the Integrated Disbursement and Information System (IDIS). The IDIS template contains relevant section and a series of questions to complete the plan. The City of Santa Ana's 2019-2020 Annual Action Plan was developed using the IRIS template and in accordance with statutory addition, the City consulted with residents, non-profit orl Continuum of Care in preparing this Annual Action Plan. Provide a concise summary of the jurisdic' public and assisted housing providers and and service agencies (91.215(1)) A ,. The City of Santa Ana has its own Hot Authority and City staff sit on various including the Orange Cog tyi orYYiu Committee, the Regiolsdl pHA ColhaE�c Leadership Council. Th &I, is also a Association of Nonprofit Housing, am Officials The C 'SFSG fund'eHgiq dew rz 1, ,e T work datlVIth t}te tame Countv_H, Describe coordihaRtion with homeless persons'(p�rticul i children, veterans, and �na nd federal regulations. in lic housing agencies, and the to enhance verrhmental between 31 health g u�fh`dt�%ond works`16' ; boratively on all programs. Housing nmt[Sees he I; with othr,iocal cities and providers B6��� of Ca'r CoC) B�dd�.td�uhg CoC Housing Opportunities ive o N me�1�@3` R 'isaaWi Iihe United to End Homelessness nber of ti WO'rinedy Com�isslon, Southern California e Nationalgciation of Housing and Redevelopment s�rYtrgpch Teaa,(HEART) is comprised ofSAPD officers who h CARa >r Agehcy to)refer individuals to mental health services. um of Care and efforts to address the needs of Ily homeless individuals and families, families with youth) and persons at risk of homelessness. 2-1-1 Orange County is the Coi nty's lead with the Coordinated EntrySystem as well as the Homeless Management Information System (HMIS). Each sub -recipient that the City funds is required to participate in this system. With the establishment of the Coordinated Entry System, organizations are required to lower their barriers to entry and adopt a Housing First model. The Vulnerability Index - Service Prioritization Decision Assistance Tool (VI-SPDAT) is used to help in the placement of housing. City staff are active on several of the Continuum's sub -committees and the Continuum of Care's governing board. Annual Action Plan 2019 OMB Control No: 2506-0117 (exp. 06/30/2018) 75C-12 Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS Since 1998, the County of Orange has managed a comprehensive, coordinated, and a regional Continuum of Care (CoC) strategy that includes participation of all$ 'ties In the County, including homeless housing and service providers, community groups, faitli%ft d groups, interested business leaders, schools, and other stakeholders to identify the gap :Mn '�7,Cpet needs of the individuals in the ��. County experiencing homelessness. Needs and prioritie firft e indnr IuIs in the County experiencing homelessness continue to be identified through the G```ystem of careg�j'�jc staff participate on several sub -committees within the Continuum of Care all ddinates on a varie @Trojects. Additionally, ity the Orange County ESG grantees (County of Orange^cof Anaheim, City of G "r�t ern Grove, and the City of Santa Ana) have developed the Orange County ESG oliabora�..i. a unified a�ch to requesting, reviewing and funding ESG subrecipients This collaborafIVe jI h has streamlinaaJ) b application and review process and allowed grantees' Z2 fitter understa' eimpacts of funding decisions. Future Collaborative efforts will include unified t c onitoring" Yhi s and other actions to better serve our families who are experiencing or are at=risk of hoeie@@mess. 2. Describe Agenei2g Coups raniYation3and others who participated in the process and descrlbe4hjuisdictio:ns withlQusing, social service agencies and other Annual Action Plan 2019 7 OMB Control No: 2506-0117 (exp. 06130/2028) 7 5 C _ 13 Q r c w a v c c a " m 10 c 'o t c x L° ° c 0 v .on E O N O 4� u -c ° v c o L = Y VI O G G M L C 1 E V Q C j > O ME O Ln Q E o x.'. w O cu w ��,•_. O u N a ,c .c E G Y � 'L° L 'ay}Y< U N OYv1 C Y tVYY J L `�; l �i�' �j '✓f�Vl C1 'i'Tj1. j^Y �'9-4 Ewp O a -0= 00 C 0c4� "N,,;{{ h of `Ns N iJ C G c G."'4f/1 cu �c vi vij x,'Q~3-`ICJ• Y G vl `m aLi az O1'.-�Km c c �aid1 •'c p� C O O O drat yv��i� �i,,j�R'� ARM Q CO M tl0 jt (� QJ zO1 Ol ='��i';N - Q L L L .0 E in f Y Y Y a 0 0 0 u N O O O sip O'er = x 0. piA:p .G'a0 V N;?• 01 i 9 F N C N N (CO 4 L m t20 vi a c o m o O 3 c C r U T 0 01 a 01 s t C W y N � Q W O1 p aJ v M 75C-14 IT 75C-15 c C OD N C_ 0 O N J2 ' f0 Y to va a m E to: o E W 0 o V L o a m N A 'y E u N Ln L m E E ,4 LA F v FL- 0 0 w a Y cu v E E 0 u M a (D Y cm C a Ul m v a E d U1 3 v a 3 75C-16 Lo a cc A! CL CL m YJ E c 0 CL 0 0 0 E c E Ln E Ap MOR MR" MAY Almy c VIM a.A kam ' C (D Him ARM! E fi�P al CA 0 CL - r. 5uaic AW 3F w 10 CL A"N p 0 bD C 0 r a M 0 cc m a CL al M 0 Z MON 0 0 M a .0 tu to O m O O 2 . ts < C 75C-1 7 o v m a � r a � o �0N1 E a m E° zg4w'l IE m° E a w a qv y 06 c x ,a cq xf n u`o v t .L. t c o u a s -v RM 0,91 ,. r$ N tn o (u � Z vni o voi s UJ a m 0. H 3 z N 75C-18 d u a 0 't1 c a E 0 N a c Y N a m C u m o C E a 0 E 0 v a o a E 3 a E '' c i �,£w y En. u- u m 2 Y 0 0 W Y a f0 F- .0 u N u' a v 0 F 75C-19 W a W N �I N N r4 d L 3 O H h U d X c d W Yi Y Ln a ei C 'u CL C ¢ 5 0 ° u E c c o m o u o c 0 o •Yn x c O no + c 6 E i m °Ln a to u aNi 4 c a C O v B ❑ v m ,° E a m '� v •a a)c c z v a h o t� m w Y Y Q 3 p v o � 0 o> a U v CL'O N OL v r+ rq vi °c (Ai M O E •O + W W w e s v - O � o m e a m o .n a E E u ¢0 off; a c-0 �Svi 4 s.Y,;.a-. to 00 q, _r t0 MWcn a v �'�n m0 ', c33y u a:- � N ��4 : n rt � Y ` M Ln C � 4Z W N ° dtUr ;-.tea a LL C •° _ • i. O i V 0 O ° WO 7 W y a �n ca o m CL U 75C-20 m a ed 0 0 L Y N a o 0 Q O 0 L ,N O L C O a N o a w 0 0 o v i m 'c c doY m - c c'E Z O w. o a m m o c ow Q E c " a S v E s maa a O y W a u w U L N N N L a O+ L Q a E jr, O Y d d C10 O w c a a a E m E uMEN- ,a a Ln V T em `,.PRO :4 N co C(. Y o V Y ¢�``<,FYMIt : &:c.a d W N O N e O N u0. c 03 T-i a c c ?_' 3 o y a m c m .O °w a �_° c 2 3 ° t; �a :J cr Q E= H E m" = '0 3 0 L C c O G m i U 2 Z 2 2 two 2 F- 0 0 a w E o � a = N N 75C-21 CD b O C G G N .Q V � X C N at z di 3 ° Lv 2 E N sn C F- L 9 « m w O ; g a 3 C E u. �._.. u A�3"v _ate Go Z� v @ggj ca�i N a cn L A W i�ya �'u �' N �z 0�• r a z ., . ° E ' t m of N >'�''� .rE vTY "liffi ILI C g :..1 N i. 3 c m 44 � ,in Qc c 6 .a u U I S p C 0 0 F: in O LL O N O L C N 'VIVI •� Y Y 10 Y_ y C 7 i G t C 7 C N m }n O. C •� C 2 C 7 U > oi N NI u MI O N E O (7 CL w 3 a O O ° @ C ^ a O o o 2". 3 C a U Y ` � Y C1 bo c "" o �a Oa y L w yo a O c _ w00 o c a C Y i C � 00 � m �O E Q N O C o _ u m c Da U p u °c o v c w m E e a ° w ` o v d C v C m c i o m E al F O a O 0 > O L T N E c C w U u u O bILID CL O m C c u o H VI � S9"gCi"a U L L o � c Mill O Y s C na>.. �e Qk �i„ 41 3 ro��iS C b�. N ° 1• E 0) Gr C 00 G1 A G)ma y'• w E _m I_ OI 41 .,EN 'n U N W C O � a+ ..• t O to E ' Co uu y u p IS ° 0 a L m u w c � 1n v r E C n0LUM n E w o u u H Y IT L x E r > V 75C-22 u f0 w O � U ' c^ ~ v° E c E o v L° m u o Y o c ^ w O C CO COL. V .O N O. C O ` N •W H u C W V O w w p.c 'd c. 0 .c u 'O Ol H��� N L �• U � '3 GI c E V- U a aEJ a n@ L w c N S � •E Y C u°i a. N p, GJ U1 10.. u C m N y o ° toto i+ j E u up!a'Yn m CL a 'u .. v aci N 75C-23 If appropriate, describe publically owned land or property located within the jurisdiction that may be used to address the needs identified in the plan The City's Housing Authority owns four parcels previously held by the former Redevelopment Agency. In FY 2018-2019, the Housing Authority issued an RFP for the development of affordable housing on these four parcels. Through that RFP process, both CDBG and HOME Program funds were committed to two affordable housing projects by the City for the development of affordable housing on this publicly - owned property. The City also acquired two properties with CDBG funding in FY Z0,�016 that will be developed for two t� new parks. One of these parks is anticipated to use a State o(3 ifgr0ia Housing Related Parks program A grant and be completed in FY 2019-2020. 61- Annual Action Plan 2019 PS OMB Control No: 2506-0117 (exp. 06/30/2018) 75C-24 Z� C Q m E O Z7 m E E 3 0 O w L {o g y C V v 4 E OO u Y sy+ 2 O C L O. N 0 N a LLn N N (F d E w N d h W N O u_ C « m GJ N 'O h Y vl O O Z yy V m Q c r N m C C maN m 41 t C O 7 N v G c c t E E v Oc .o r 3 C I� m S 2 0 a 2 aL ` O n - o 0 o 0 0 a U) 00 io a m w [n m vi O m V � c 4L d -V� 00 N E 7� m +� N _u 2 w h M v N N W d U o � x :n . a JZ �� c nr a Nacz3 ate' `�°� w v t x �„'tr V 2• fpp�. �,rp,��,tn�5'y .FnYT� ay.. N�� C CC a •M � OO IA'i}l, �iE^'.� C V 3 N'yq�Y"ea oT `t Y'-C l0 E o V mcE > o p p• a... d L � In ARE". 'f L!1 o WV- Y 1. 0 m .2 L a Z u a 0 it vV) v o x o. v o 0 V N H 75C-25 `o v G t t E c r r �° O v y O o O N C C v N � L a o y 0 m m m m m O O CO M rn ONi p m N O CL O 'O u m ❑U n OU 6 ❑U m u W 2 0 V m C W t4 V'F I, 0) LL ryj N t/? VT W VF w �+ E ' = E•- E :=' °W N ,o V ` E > Z o ID 0 C U O C to a c u a 01 CJE C 0 L V1 N 0 5 C E 7 y hL O OD xol W H O O .m 7 O W� x x a LL a 2 u o ,.rr�P -a N 2 to to w m E E .. r o a o:3 o 'o m a m w a L H 0 E> O O a)O° c E> N c E> O° Cl o o ny„ E �a p!bcs'� 'Z3»T!o-iS#J o O zu❑zuozu❑ax CA yCj Y '0)-1 O '0)-1 O O R rt�y N N AN „tom. � A Ln N i ES N N N NON N Y OF m U O. O y y > 0 x E c 'o z w o = u ° x a 47 U 11 C G a '> = a LL � w¢ c ' w o a u° a a o v r` o� N o m a in 10 n co O N 75C-26 Al C O = E > aLoo m v o p. c o. E � 0 .c J � ZL .L�. f'i1 a bA c Z w c y0 - N G v a E " c a C 7) (D �s`a' m N L E > �. A+ �n V�+ as E E E � E m E o E N d O O. 6! A;3ax° xiLF V� E �= 3wG C p. ' trpp a CgL9 r—I^I E • % gg CU G y y to ° r� cua c m B4A L v it Q N yfgE f0 .^yS. 7 Y N t4' '{y 'Z G La a W xE' s m'�y'$ t C h Y = to : O Y a a n. ri L, is ^ N 7 a �a Poy�3 G) NW; +. L p NcuE v E m :3cu Q T '2 a o a •� o p uu'i a v y c •� u m c t u m c —p� c W .c y o w u u U O o c V '= Ur C O c U. p` n Ur CO v U N m C u 0 c u 0 M o 0 2 W a 1 U vl G) CL U m W U N U U U y E C ° y E O o y E C ° y E C ° W E C ° y E C ° m Z a •O m z a •y m Z a •,., m Z a •i m Z S •o m Z a •c m (0 WOf0 10 N f0 10 N p p N 10 f0 uVj 710 lull O w O w 0 o O C7 O w U' o O w O W w 0 O w O U) w O O 0 O w 0 o O 0 O W w 0 rl N M -f Ln w 75C-27 i L m Y Y > W m E •° O r c Q D. tm v w Y ti L m to O O O CU L Y E C N m C o m m r a c 3 LAc yo L O � y V r . L Y r' a m o ak c O c ? c E c Y° on cv •'^mac E E t:: :Q 0 __ice aco L U ) 1n bx �o .: .0 y � A � C L •y E Y L �Y1 o IF a aci a c v o y n c_ o > O o U 3 3 z a L Y _ C "O 'mO O m w 0 n w n o a v v a v v00 0 z � v n 0 o 3 0 3 a '" a c a m w o o f • E C7 m �.. O l7 m H m _ U u a u c m s m mL E E o E o z a Lu 2 a Lra 09 O O 0 O O U (D (7 C7 0 l9 C7 0 n 00 N N 75C-28 Projects AP-35 Projects — 91.220(d) Introduction The 2019 Annual Plan sets forth a description of activities for the use of funds that will become available during the coming fiscal year, determines goals for individuals and households to be served, and describes the implementation plan and geographic location of the activities to be undertaken. The development of the Annual Action Plan involved consultation housing and homeless services within the City of Santa Ana, a were public meetings conducted with appropriate I housing needs of children, elderly persons, persons homelessness. Projects # AW ''Pro'eTmlarne 1 �; z . *< CDBG19-ADMII�1 frtATION; & 2 CDBG19-FAIR HOII DA F ' _ �, .�_ WWI 3 CDB[� pD ,F ENFOR`t�s tnE-`���_'.`"'' -'+'Ys:?: ,Cap J = N °;'t 4pT9=E`Caf�FijC DEVELT3!? ENT "'rf 5 .G19-PUBLIC Sf: j�E PRCROAAMS 6 C6B19-PARK IMPROl�Ij11ENTS >` 7 CDBGIB"NULTI FAMILY KEBAB 8 CDBG19-HQEBUYER DOIt( ;PAYMENT ASSISTANCE 9 CDBG19-STRE'E, IINFRAMCTURAL IMPROVEMENTS 10 CDBG19-NEIGHB'O1;I00D SPONSORED IMPROVEMENTS 11 CDBG19-SINGLE FAMILREHAB 12 ESG19-HOMELESS ACTIVITIES 13 HOME19-ADMIN 14 HOME19-SINGLE FAMILY REHAB 15 HOME19-CHDO 16 HOME19-AFFORDABLE RENTAL HOUSING Table 7 - Project Information Annual Action Plan 2019 a agencies involved in delivering section PR-10. In addition there rvice agencies regarding the (`individuals experiencing 23 OMB Control No: 2506-0117 (exp. 06/30/2018) 75C-29 Describe the reasons for allocation priorities and any obstacles to addressing underserved needs. These projects are deemed to be of the highest priority and meet the greatest need. The chief obstacle to meeting these needs is a lack of resources to provide a greater level of assistance. Annual Action Plan 2019 24 OMB Control No: 2506-0117 (e P, 06/30/2018) 75C-30 4 C O f�0 E O C A E E 0 d 0 a` N N 75C-31 1 Project Name CDBG19-ADMINISTRATION Target Area Citywide Goals Supported Administration Needs Addressed Housing Opportunities Homeless Services Public Service Programs Public Facilities/Infrastructure Economic Development A' p �e�urNs" Code Enforcement u� Fair Housing VRI— Funding CDBG: $980,230 ,yam HOME: $100,0100 . Description Housing OpportunlrMs Homeless Services, Pl' it Service Programs, Public Facilities/Infrastt yre, Ec 109pic Develop eklt Code Enforcettte,Rt, Fair Housing'--����r Target Date 6/30/20,41N. i Estimate the number rn f Y 4 `ak and type of famllles�s� �x that will be nefltrb�n1'�� y, WMI the proposed r activities ;. LocatioiiFbe3c�iption < 3^�` p- �A a,ui.+h PJel3ned Activities it r2"z <, -.�' fit` .v The:program wil r iNe for the overall administration of the CDBG �, €$ ^-. inif' ;Program.-,J1d a portion of the HOME Program, to include: preparation a `:d submissio'+n of required contracts with HUD, submission of all j r2�Ving reqtitrements, provision of individual project oversight, i mon1toring of all project implementation and ongoing completion, and i fis2aimanagement and oversight. 2 Project Name �FDBG19-FAIR ,; HOUSING Target Area o-Citywide Goals Supported Support Fair Housing Needs Addressed Fair Housing Funding CDBG: $60,000 Annual Action Plan 2019 26 0M3 Control No: 2506-0117(Exp. 06/30/2019) 75C-32 Description The program will provide fair housing enforcement, community education, landlord/tenant counseling/mediation services and city administrative support for the residents of the City of Santa Ana. Target Date 6/30/2020 Estimate the number 800 unduplicated low- to moderate- income Santa Ana residents will and type of families benefit from Fair Housing services. that will benefit from the proposedss activities U_ AMC Location Description Planned Activities Fair Housing FDA 3 Project Name CDBG19-CODEERFOVIEMENT "` w Target Area Low -and Moderate 1p'�om`e area, Goals Supported Code Enforcement 65<a. Needs Addressed Code En au rce�ent?s Funding _q Z r CDBG: $79U ? 64 s' Description a��;;gg..r ervesinjT f9mi1yand (ItjfamilyT[olasingstock. Target Date AI Y 673Ytf,§020 s Estimate the number,,., 3,0001 to moderfe- income households. and type am as that tYNjlLhetle filrom tfi2l7 oposed s=_� activities Locatlo Descriptions Planned AcIll ties C'Enforcement. Preserve single family and multifamily housing axt:. 'AE T slCOCk' Project Name `E_GD G19-ECONOMIC DEVELOPMENT Target Area Citywide Goals Supported Economic Development Activities Needs Addressed Economic Development Funding CDBG:$72,926 Description Provide economic development assistance to businesses. Target Date 6/30/2020 Annual Action Plan 2019 27 OMB Control No: 2506-0117(exp. 06/30/2018) 75C-33 Estimate the number and type of families that will benefit from the proposed activities Location Description Planned Activities S Project Name CD8G19-PUBLIC SERVICE PROGRAM 0 Target Area Citywide xY 6 Goals Supported Public Service Programs. Needs Addressed Public Service Progr % Funding CDBG: $872,543Y Description Provide programs fore=Wderlyq.Gth, persons �IYIi disabilities, and low -in e;ndividuals. U � w Target Date D-t 6/30/20Y�`i"�ss�,,` Estimate the number 3,67 undupti> ode4te,income residents. and type of famili atedi v ray$ by that will benefit#pp�ttS. � -� ��.�.r the proposedz 3Y, activities _ Loco a 1ption _tqR p�ahhed Acttvrtlest., Fundonprofit orgatliitions to provide eligible public services with an fi y'emphas s o: crime prevention, intervention, suppression for children , AtiY tilies. Nonprofits will be determined through a CDBG app��ation process. 6 Project Name 1 CDCt19-PARIC IMPROVEMENTS Target Area �= +wide Goals Supported fPublicFacilties/Infrastructures Needs Addressed Public Facilities/Infrastructure Funding CDBG: $1,435,000 Description Use CDBG Funds for park and public facility improvements to benefit low -to moderate- income residents. Target Date Annual Action Plan 2019 28 OMB Control No: 250&0117 (up. 06/3012018) 75C-34 Estimate the number and type of families that will benefit from the proposed activities Location Description Planned Activities 7 Project Name aF. CDBG19-MULTI FAMILY REHAB Target Area Citywide f Goals Supported Affordable Housing OppOU`ties Needs Addressed HousingOpportunitj°? Funding CDBG: $175,000 y Description Acquisition and conv re S lrlof prglf ny into affor alal�,rental housing for low�jjk'gvme families Ap I.tte funds from CD 6-18: `o $2,362;0+: 11e reallocate his project. Target Date g 6 30 2021 "^ ~a / / ,' � b. Estimate the numbers 2, ow- to moderate- inc a }�ouseho�d u, and type of fa rFy ~a that willbenefirgm� x aa' the proposed lw; activi I �r^!1 batoh Dscrip{igfi,:� le Play%gd Activities : The Cl =pjans to release a Request for Proposals (RFP) for Affordable 04 =Eiousing DAyglgpment. The CDBG funds will be made available through , -` o ��"'�r a tW6FP for the acquisition of eligible properties for rental housing; and a u thdztquisition and conversion of non-residential property to rv$ -L.rIR.-- mul tifamily rental housing units. 8 F C! Project Name �" et r $CUBG19-HOMEBUYER DOWN PAYMENT ASSISTANCE Target Area Citywide Goals Supported Affordable Housing Opportunities Needs Addressed Housing Opportunities Funding CDBG: $160,000 Description Provide first-time homebuyer down payment assistance. Target Date 6/30/2020 Annual Action Plan 2019 F OMB Control No: 2506-0117(exp. 06/30/2018) 75C_35 Estimate the number 2 low- to moderate- income households. and type of families that will benefit from the proposed activities Location Description Planned Activities Provide first-time homebuyer down payment assistance. 9 Project Name CDBG19-STREET & INFRASTRUCTU,R QMPROVEMENTS Target Area Citywide stiA , Goals Supported µ Needs Addressed Funding CDBG:$2,150,323z Description Residential street Imp Fiv ents be undertakekMCDBG eligible s� %dA ry` areas. amps for the bn mei?.atgn of j plan would ADA TranslnM be instalfedi?,jDft of this pr�oj ,as well as construction, 1' n� � reconstrugt on, rehab l tation, ati `''8r installation of public facilities and improveme��= a cGE `t.•Y �m a a Target Date Estimate the nl fopr .',µ WW\� and type of families< N� t:M � � •.,,3 •,�� , �..... _Pescr(ption Locat' Planned AOLIVIties 10 Project Name r : • CD -MG 9-NEIGHBORHOOD SPONSORED IMPROVEMENTS Target Area . n1;:zt:ra Cjjywide Goals Supported 'Public Facilties/Infrastructures Needs Addressed Public Facilities/Infrastructure Funding CDBG: $50,000 Description Graffiti abatement and solar lights in CDBG eligible areas. Target Date 6/30/2020 Annual Action Plan 2019 30 OMB Control No: 2506-0117 (exp. 06/30/2D18) 75C-36 Estimate the number and type of families that will benefit from the proposed activities Location Description Planned Activities 11 Project Name YSG CDBG19-SINGLE FAMILY REHAB Target Area Citywide _z Goals Supported Affordable Housing Opporti�n Needs Addressed HousingOpportunitie Funding CDBG: $300,000 _`1 �?� Description Owner -occupied housik: ehabilitti t n. Target Date Gy 6/30/2 2(T� Estimate the number 4 low- to e Ajincome h o sgh4lds. and type of families '%e <• that will benefit frortf `g' the proposed c a� y "e A —Mg n activities 5 � < Location Description Ya; Pla�nri¢dAittyt}IESth bW[jf OCCU�I(rZ7 hou_sm ehabilitation. 12 _`➢SSG_. •�: 8' ?. �a Pt;Dtect Name �4� y Y - �ESGtiOMELESS AG7IVITIES ,y Targ'e Area 7Y` "C tywide :, Su Goals pported Wi Hgm'eless Activities K >d. Adrrtnistration Needs Addressed <-?: Services •.a. . .lriieless Funding `,BG:$493,582 Description Emergency Solutions Grant project activities Including Street Outreach and Engagement, Emergency Shelter, Homeless Prevention, Rapid Re - Housing, Data and Administration oversight and monitoring. Target Date 6/30/2020 Annual Action Plan 2019 31 OMB Control No: 2506-0117(exp. 06/30/2018) 75C-37 Estimate the number The 2018 Point in Time (PIT) conducted by the City of Santa Ana and type of families showed that there were over 1600 individuals experiencing that will benefit from homelessness in Santa Ana. This number represented an increase of the proposed 121%from the 2017 Point in Time count. In January of 2019, the activities County of Orange conducted the PIT for the entire county. While the numbers of individuals experiencing homelessness increased Countywide, the Point in -Time Count showed that 1769 of the Counties 6,860 homeless individuals are in Santa Ana. The City has increased efforts to assist those op. t e streets and encampments have c�4 been reduced, The City will co . I ;ue to operate the Interim Homeless Shelter in FY 2019-2020. T4111111 rovides 200 emergency beds for individuals while at the saet, Ime wtlKklrJg to place individuals into permanent housing oli i{jhs. Location Description p Activities will be `� p :oY�ed citywide as well as'�he Linl<Shelter site. Domestic Violen _lshelters are,purposely 0NQqed outside of the -u, City to provide addition'� a � participants she`lt�d. tiety.�: Planned Activities ThrougEopXr cts with no r a# homeless service providers, planned activities I clptl€ NBless preventlQ.n, rapid re -housing, shelter, outreach, aR'itJata2 [[e'ttion. 13�- Project Name ;; . Q[V1E19-ADJ'f�? a Target Area Cityw e Goals Supported ''`�FAffo Iousing7pprtunities ._ wt Neei15IddressedV,,M Hoiislh&rOpportidi Id#v Funajrtg- 0ME:14�5,725 �R1:.. Descript o i;, AON�E fund"Jilized to cover administrative costs for the HOME R. 1- priftM. Target Date aaa Estimate the number; =b and type of families that will benefit from the proposed activities Location Description Planned Activities Project Name HOME19-SINGLE FAMILY REHAB Annual Action Plan 2019 32 OMB Control No: 2506-0117 (e P. 06/30/2018) 75C-38 14 Target Area Citywide Goals Supported Affordable Housing Opportunities Needs Addressed Housing Opportunities Funding HOME: $100,000 Description HOME funds will be used for mobile home and single family rehab projects for qualified households within the City of Santa Ana. Target Date• Estimate the number - HOME Funds will be used to finaft"C�e`the rehabilitation of owner - and and type of families occupied single family horr�g3 aOtl miibile homes for residential will benefit from lfflthat properties to address c% 4iealth a ihii Rty issues in accordance with the proposed the HOME program activities? . Location Descriptlon Planned Activities .� � 15 project Name H0ME19,e a g t Target Area Citywide Goals Supported o 7fojdable HolyOppnt eS.� NeedsAddressr ly HoUst%OpportntT. t ��' Funding .HOME 591,063� Descr y n "` o f a S5, iie�} e4for 0gQO-qualified projects within the City of Santa An .t Target=Date rim " Estimate 9 number h fi5 S' ,' and type of�{arttilies z ^i that will benefit;#rom3 ab i the proposed activities 4 '" 4� Location Description Planned Activities 16 Project Name HOME19-AFFORDABLE RENTAL HOUSING Target Area Citywide Goals Supported Affordable Housing Opportunities Needs Addressed Housing Opportunities Annual Action Plan 2019 33 OMB Control No: 2506-0117(exp. 06/30/2018) 75C-39 Funding HOME: $4,149,061 Description HOME funds will be used for eligible activities related to new construction or acquisition and rehabilitation of affordable rental housing in the City of Santa Ana. Target Date Estimate the number and type of families that will benefit from the proposedv activities`° Location Description Planned Activities The City plans to a sa Request for Proals p(RFP) for Affordable lop Housing Devem�t�The HOME funds will bade available through the RFP for ttie� uisitio�gd/or rehabi(itat'on of eligible grope _q.for rental or tra i o Mousing; acqulslto nd conversion .,, of non tegtil property to Itifamily rental housing units; and/or new conststlo'n4o_ftLousing uni r rental housing. Annual Action Plan 2019 34 OMB Control No: 250"117 (up. 06/3012018) 75C-40 AP-50 Geographic Distribution — 91.22O(f) Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed HUD -funded activities are limited to the City's low -and moderate -income areas, which encompasses the majority of the City's residential areas. Areas of the City outside of the CDBG target areas will benefit from activities that are limited -clientele in nature, i.e., a person/household can benefit from a federally - assisted program provided that they meet the program's eligibility criteria. Eligibility is typically established by household income and household size. Iff D .1 CDBG program funds will be expended based on program i [ifgfi)4r example, public services will be v 04 available on a citywide basis for qualified beneficiaries•,tQJrb_bsing aV rogram administration activities will also be carried out on a citywide basis -A, o r able housing, t(e enforcement and community development projects (i.e. street and "improvement projects w 11 be carried out in the City's low- and moderate -income areas; i.e., areas tiZe City wherg the majority esidents meet R .sue HUD's low- and moderate -income area definition.. HOME funds will be utilized to activities for very low-income h ESG funding will be individuals who are engagement suppor Geograjzl$ �c Distribution T3igetArea >Ve Perc�i�flgeofFunds Low -and Mo�'ej"ate-Income are`�'�', 61 Citywide ?� 39 and rehabilitation ess or that assist those and related outreach and Table 8- Geographic Dls'tibUlon $? y-3L.r Rationale for the priorities for allocating investments geographically Funds are used city-wide to benefit the residents of the City of Santa Ana. Code enforcement, street Annual Action Plan 2019 35 OMB Control No: 2506-0117 (ap. 06/30/2018) 7 5 C _41 improvements, and park improvements are undertaken in Low -and Moderate -Income areas. Annual Action Plan 2019 E% OMB Control No: 2506-0117 (exp. 06/30/2018) 75C-42 Affordable Housing AP-55 Affordable Housing — 91.220(g) Introduction As noted earlier, the most important impediment to providing affordable housing is due to limited Federal and State resources for affordable housing initiatives. The lack of programs and resources to reduce excessive rent or mortgage burdens to qualified persons is a key factor. Another barrier to providing affordable housing in Santa Ana isgt_i6 iigh cost of housing created by a demand for housing, both existing and new, which exceedsWlY,, uT?` 0 supply. Housing prices, both v k ownership and rental, remain high, especially for loweryt�c e house klts In addition, the cost of site acquisition is very hig.h8�T1`development costs a also very high. These factors make affordable housing construction exprt3 ire and put affordable hoti; og out of the reach of low-income households. & �%- The Housing Needs Assessment also id'ei still remains, which also is outside the sc Payment Assistance Program, applicants for a down payment or p$?fl* �_.�.. i`,histoi market. in the mortgage origination process V. In several instances for our Down qf. �nances including lack of funds ualify for a first loan in the private In an effort to mitigate thes7lnrrier5anta Ana h02dertaken'the following actions among several others In 2015fifie City Council'r l ed anc! adopted an Ificld-ionary housing ordinance referred to as the �sr a. o. Housing iOppQltunity Ordinahee H00) t a applies to residential projects with a zone change that allow residential defgp;ment where such uses we,not previously allowed, and include more than 5 units, to provide eithe-F46%of all new u-i{ to be affordable to very -low income households or 15% of all new units to be affords letb>low-incoriig households. The City's inclusionary housing ordinance has generated over $13.8 rrli)kn sincetti3vuas adopted in 2011. - The City utilizes HOME, CDBG`imd Inclusionary Housing Funds to fund the development, acquisition and/or rehabilitation of affordable rental housing units. This public assistance will result in restricted lower rents for assisted units that are affordable to low -Income and very low-income families. - The City doubled the amount of Down Payment Assistance Funds available to low-income families to purchase a home from $40,000 to $80,000 in order to make homeownership more accessible. Annual Action Plan 2019 37 OMB Control No: 2506-0117(up. O6/30/2018) 75C-43 -The City's Housing Authority conducts outreach to rental property owners to encourage participation in the Housing Choice Voucher Program. One Year Goals for the Number of Households to be Supported Homeless�75 Non -Homeless fry"t;5Ci4gW Special -Needs Total �` 75 Table 9 -One Year Goals for Affordable Housing by support`lZequlrement One Year Goals for the Number of Households l$ orted Through Rental Assistance kk 0 The Production of New Units ;���a . ;a ��� .4�, 57 Rehab of Existing Units p? 611 0 Acquisition of Existing Units eL i:. a 0 Total Q 57` Table 10 - One Year Goals for%ffa?dable Housine-bv,Sunnort Discussion The Santa Aria ir0sing Author pyIl es appfpxlmateFy,.2699 Section 8 Housing Vouchers. In r ��. addltlonyte FlousmgAu hprlty hast05 HUD-VdSHrd0 Mainstream tenant -based vouchers and 175 sue''' g`,r 3� . HUD VASH.project-based �uhers. Tr'e Housing Aufh�rity has financed 179 units of permanent R4& `M . 'k supportive'.f�tiusing units thafre gither GAY rt.plete or in the pipeline including the projects referenced below, Santa Ana Arts C0116i#'ve - An acgiji ition, adaptive reuse and new construction project will complete en construction and be rea?l.y7for oce�pancy in 2019. This new project includes 57 affordable rental units for professional artists of whJ't' lb units will be for permanent supportive housing. Santa Ana Veteran's Village has broken ground and is anticipated to open in FY 2019-2020. This new construction project includes 75 permanent supportive housing units for homeless veterans. It includes 70 one -bedroom and 5 two -bedroom units with wrap -around supportive services. Aqua Housing - An acquisition and demolition project of an underutilized, blighted motel site to construct 56 permanent supportive housing units for chronically homeless individuals will commence in Annual Action Plan 2019 m OMB Control No: 2506-0117 (exp. 06130/2015( 75C-44 FY2019-2020. The project includes 12 studios and 44 one -bedroom units with wrap -around supportive services. An additional three multi -family projects have received pre -commitment awards for the development of 193 units of affordable housing, of which 134 of these units will provide permanent supportive housing. These projects are anticipated to close on their financing and begin construction in FY19-20. Annual Action Plan 2019 39 OMB Control No: 2506-0117 (up. 06/30/2019) 75C-45 AP-60 Public Housing — 91.220(h) Introduction The Housing Authority of the City of Santa Ana administers 2,699 Housing Choice Vouchers and does not own or operate any low-income public housing units. It is the mission of the Housing Authority to provide affordable housing for the most vulnerable members of our community to use as a platform to obtain self-sufficiency and independence from our assistance. Actions planned during the next year to address the Not Applicable Actions to encourage public he participate in homeownership Not applicable If the PHA is desiz provided or other Not dents to Annual Action Plan 2019 housing involved In'Whaaement and financial assistance will be LM OMB Control No: 2506-0117 (exp. 06/30/20181 75C-46 AP•65 Homeless and Other Special Needs Activities — 91.220(i) Introduction The needs of individuals experiencing homelessness and persons with special needs are complex and require a wide range of specialized services. Numerous agencies are typically involved in the care of these individuals, providing distinct services such as housing, mental health counseling, employment training, and case management services. A number of activities and services are funded to help the needs of individuals experiencing homelessness and other special needs populations. Overall, these services address the high priority of reducing homelessness and th ; ; <hteat of becoming homeless, as t well as providing necessary supportive services. 6 There are several groups that have a high need for affc Seniors, people with disabilities, and the individuals wwll housing problems and have difficulty affording ha n) ;. need for accessible housing, whether for new hotityn of the housing they currently occupy. In addition to ge needs resulting from dementia and inc.al physical Ag. physical debilitation.ti>,tiz Describe the ju Including Reaching wslhfiafld have special housing needs. onicaeless are more likely to face and peopl E disabilities also have a 3ted existingi sing, or the adaptation z, ; lees, seniors m ,.Pave supportive >, rom dementia andU,icreasing and ending homelessness persons) and assessing their The one->/eaygoals to reduce'd�nd Iroeklessness include: • Incr ease .¢�supply of pe hnent supportive housingPreserve existing permanent supportive a g housing. • Provide fund ingifo4the C Vy temporary homeless emergency shelter, the Link. • Adapt existing hous1 ti6hieet the needs of special needs populations. • Improve access to se r ' i:es for individuals with special needs. • Assist the individuals who are homeless and those individuals at risk of homelessness with access to permanent affordable housing and necessary supportive services. • Coordinate homeless services and encourage collaboration among Homeless Service Providers and the Continuum of Care. • Work with the County of orange and the 33 cities in Orange County to address homelessness Annual Action Plan 2019 41 OMB Control No: 25CS-0117 (exp. 06/30/2019) _47 with regional efforts. The one-year actions to be taken include: • Issue Project -Based Vouchers for Permanent Supportive Housing for individuals experiencing homelessness, • Allocate ESG funds to the City's new temporary homeless emergency shelter, the Link. • Work with the County of Orange to create a permanent emergency shelter utilizing State funding. A • Reserve 50%ofSanta Ana Housing Authority turnover referred by approved referral agencies. • Provide General Funds from the City's budget to as well as other creative programming. Addressing the emergency shelter The City of Santa Ana children women, and for homeless individuals a Homeless Services Manager of homeless persons emergency homeless families with minor -aged four dormitories, family rooms, full bathroom pm the City of Santa Ana experiencing &sing and opportunities for employment. rn{i;(tild emergency shelter in the Civic Center of Santa Ana that flterffo over 425 individuals each night, and food and supportive ally basis. The County also runs an emergency cold -weather for approximately 200 individuals and a 60-bed women's one-year actions will address the needs of individuals who are homeless that includes unaccompanied women, victims of domestic violence, chronically homeless Individuals and families, families with children, veterans and their families, and unaccompanied youth. The range of services include emergency shelter, transitional housing and permanent supportive housing. ESG funds will provide assistance for street outreach services, homeless prevention and rapid re -housing. The ESG funded HEART outreach team will provide outreach and engagement services to individuals Annual Action Plan 2019 rrj OMB Control No: 2506-0117 (exp. 06/30/2018) 75C-48 experiencing homelessness throughout the City. Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing indi.i iduals and families who were recently homeless from becoming homeless again 1 The City supports a number of programs to assist low-ir homeless, Including Section 8 Housing Choice vouch 5 assistance, food assistance, and counseling are als Va' homelessness and to avoid becoming homeless. ThIC�i1 provides oversight for the Vulnerability Index - Servic' i to prioritize the most vulnerable chron!6611y_ homeless it offered in all programs to help preventijY;s from In addition, the Housing Authority of the vouchers for permanent (ApRive.hous ?ffi,e iindivid' ais,and families to avoid becoming thersupporteies, such as job and training 26 ble to help individ aisgecoverfrom works closely with the: Qntinuum of Care who pritizati$ryPecision Assi r,e Tool (VI -SPDAT) iu ali z ase management pkices are �mg IlirRiack into homelessness. VASH project -based Helping lowin onpe Mc1lvidti5ls nd ami1e avold'kecoming homeless, especially extremely �5. '$��i�ii�a 4.z' �r1s-F� s;�� low me .Win rtni9tlalfand fames and t�tos�e�hd-are: being discharged from publicly funded. n�titutions an S ms W a a such as health care facilities, mental health facilities foster taretid other yout}iacilities;aid, corrections programs and institutions); or, receiving .£�ca. $ate T:: assistance frog - ublic or private;agencigihat address housing, health, social services, employment, educ-`a#ion, or yoF;needs. The goals listed above will'l'elp1hi9e individuals and families to avoid becoming homelessness. The ESG program will fund homelessfiWo evention programs including utility and security deposit assistance as well as rental assistance. In addition to outreach and engagement, the HEART program, provides bus tickets for individuals interested in being reunited with their families; often following a release from a correctional facility. The County of Orange is equipped to serve people discharged from publicly funded Annual Action Plan 2019 43 OMB Control No: 2506-0117 (exp. 06/30/2018) 75C-49 Institutions or systems of care such as healthcare facilities or correction programs. Annual Action Plan 2019 44 OMB Control No: 25060117 (exp. 06/30/2018) 75C-50 AP-75 Barriers to affordable housing — 91.2200) Introduction: Through vehicles such as zoning ordinances, subdivision controls, permit systems, and housing codes and standards, the City has attempted to ensure the health, safety, and quality of life of its residents while minimizing the barriers that may impede the development of affordable housing. None of these measures is intended to restrict the affordability of housing, though these regulations may on occasion influence the pricing of housing. Impediments to affordable housing revolves around the lack ofaitl' to of the City residents. Additionally, the lack of programs and resources to reduce x �s lM rent or mortgage burdens to �.-. Individuals is key. The City does all that it can with the lirrii re, iesoU'fees.available to maintain and produce affordable housing for both owners and ren Home rehablli ion and home ownerships ��. programs are both available. The City's Work Cent�e�" li Economic Develop pt programs work to u. retain, expand, train and attract individuals and li jq,gsses to the City. Actions it planned to remove or ame7 as barriers to affordable housing such ordinances, building cod&Ne` and c • �� return on residential�lrivistmentx�� The the 1;, es of public policies that serve s, ff%k,-q-plicies affecting land, zoning kgtlont hd policies affecting the of affordable housing including the following: • GoS�nmental constiainfs,such 5§plperty taxes, land -use controls (e.g., density and zoning ss�_ N restrictjorLs), building copes buildin&hrmit fees, on-site/off-site improvement, prevailing wage z regulatidnrand ADA corri'pli nce. • Market consi iaiftYs including; he availability, cost, and competition for land. other constraints .... ;P?y :Frs include limited 'Httdrsing financing sources, finance costs, and the costs of 32 rir. construction. • Available land in the City mostly consists of small parcels that must be assembled for significant new construction projects. Relocation costs and housing replacement requirements for redeveloping improved properties also presents barriers to the development of affordable housing. • The region's rents have continued to increase. Higher rents limited the ability of some low- income households to obtain affordable housing. Households with poor credit history are also Annual Action Plan 2019 45 OMB Control No: 2506-0117 (exp. 06/30/2018) 75C-51 severely impacted. Since governmental restrictions may constrain the production of affordable housing, the City of Santa Ana continues to monitor, analyze and address, as necessary, governmental regulations, land use controls and residential development standards that affect the production and preservation of affordable housing. The Housing Needs Assessment also identified stringent criteria continues to this day even after the 2010 foreclosure crisis hash and control of City policy. In some instances, issues revolviri payment, credit history, employment history) affect theg�Kaiiabi Market factors that tend to restrict affordable houslCg pFoductil costs, and the availability of financing. In an effort to mitigate these barriers, • City Council adopted an inclusi Ordinance (H00) that requires to very low- and low;income h • The autilize t i y �M��cl rehabilitation i1,a��fQntal hou & units thus partial(yk-b[fsetting'. • TheCitvs Discussion: The City is evaI changes to the City of f'eamortgage origination process that d, which also is outside the scope .1 ersonal finances (lack of down r r of#fo{dable housing for residents. are: hcosts, high construction the folloWing actions: tanc`eq`fAeferred to as the Housing Opportunity ,zwca�"P of all ne4 pits in Santa Ana to be affordable ;ourc6t�pzfundX ede glppmeiiand/or the acquisition and n nits. This �11assistance:,tgill result in lower rents for assisted e&g b�G impacts o' slime of the barriers listed above. 3U'ctS outreac,hp rental property owners to encourage ..:ems _._ of the inclusionary housing ordinance and plans to recommend Annual Action Plan 2019 M OMB Control No: 2506-0117 (exp. 06/3D/2019) 75C-52 AP-85 Other Actions — 91.220(k) Introduction: The City of Santa Ana will undertake many activities aimed at addressing the needs of the community's underserved populations. Underserved individuals include elderly, persons with a disability, youth, homeless, veterans and very low-income individuals. The City has made several efforts this past yearto address homelessness and will continue these efforts in 2019. The addition of a new Homeless Services Manager and dedicating a full-time Santa Ana Police Department Officer to act as a Homeless Liaison in 2018, as well as creating a Quality of Life Team to implement a co�GSlxiNeted response to requests for services by the community on impacts of homelessness has chan'eThe landscape of Santa Ana. In addition, the City Council declared a shelter crisis and lobbigd}r`&tate funding. The City has received $3.6 million in HEAP funds to address homelessness. Masts ni icafif � he addition of the new Interim Emergency Homeless Shelter in Santa Ana thatz ides 200 to ovary emergency shelter A t.ar beds. The City and will continue to fund the ope08W 'f this shelter while w rking with the County of Orange to open a permanent site within the next nths. Actions planned to address obstacle?%6`r`rfee}lrg and In order to serve the unders rved.populatiori"s the City Nniiocks�imite 'resources toward rehabilitating existing housing units -a xpanghe numbe'�faf d ble§zg units for both owners and renters. Housing rehab'Jiftion and atgbisit[ Vddy,dfbbpment of neov rental housing units are examples of these activities The city d local�t' p rofits will Golttmue to provide services for underserved City residents Social3eWces to be -up- v�+tri' Iude progidtps with an emphasis on crime prevention, -ate -]�`Y •;n ',� k Fa. K:ayR a ... interven�tfononU�sGpptg s�ipn fordl�en, youth�a'�fl� m71�es. Programs to service homeless individfialj<mclude Pe rma ` `t,Suppori'i Housing; Taped rehousing, homeless prevention, shelter and zz's street outreach. By focusing re�tQprces ort housing and community needs identified as high priority, the �.�g t i City will be a�'le�;to utilize limite resources rt'Aie efficiently. The City of Santa Ana*lll use ESG funding to help fund the new emergency shelter in the City of Santa 3'r Ana to meet the nee ds`ofiindividuals_ underserved and living in places not meant for habitation. In addition, Santa Ana will seek p t P. ditional resources beyond federal and state funds to address these needs. Actions planned to foster and maintain affordable housing In an effort to maintain and foster affordable housing, Santa Ana will continue to seek ways to achieve Annual Action Plan 2019 47 OMB Control No: 2S06-0117(exp. 06/30/2018) 75C-53 this objective. These will include programs and activities such as: Implement the Inclusionary housing ordinance referred to as the Housing Opportunity Ordinance (HOO.) This ordinance applies to residential projects with a zone change that allow residential development where such uses were not previously allowed, and include more than 5 units, to provide either 10% of all new units to be affordable to very -low income households or 15%of all new units to be affordable to low-income households. Developers also have an option to pay an in -lieu fee which will go towards affordable housing development within the City of Santa Ana. • Use limited public resources to fund the development an, or V of rental housing units. This public assistance will resdfiTii(gM partially offsetting the impacts of some of the bare' ^Vs°iistetl • Collaborate with CHDOs to help ensure long-t. ffordabilit, units. • Continue the Housing Authority's outreacllflp rental property in the rental assistance program. • Issue project -based vouchers to Actions planned to a acquisition and rehabilitation rents for assisted units thus of housing participation In an effort to addresstj)e,problems18 sed by leA,' sure, the 4 of Santa Ana has implemented a lead paint hazard identif ca io and rfo if[cation process cees�as part of its housing programs. This process has been deslgnedtw�o ply with FJpI�J� sed paint Hazard regulations (Title X), which became effective IJtep�embeO�gO, and,a Implemenert .bar Sonia Ana in January 2002. All owner-pcicupied housingli i rehabiftfated or constructed prior to 1979 are inspected for lead -based paint hazards tff?Lhe inspection l�d5 potenftk'1 Jead-based paint hazards, the subject property is tested — the average cosf:pr_test is $450.`71 procedures to comply with Title X has added approximately 30 I� : days to the typicalioi3Pg rehabilfAfion project. Fx=, ' • 3 P Actions planned to reduce the number of poverty -level families The objectives and strategies of this Plan are focused on reducing the number of families in poverty, improving the quality of life for the lowest -income, most vulnerable families and individuals, and lessening the impacts of poverty. Strategies include providing affordable housing and special needs housing; working to reducing homelessness; improving public facilities and streets; and economic Annual Action Plan 2019 48 0M0 Control No: 250"117 (exp, 06/30/2018) 75C-54 development activities. The transition of people above the poverty line involves a variety of policies and programs that extend beyond providing opportunities for employment at a living wage. Access to education, transportation, childcare, and housing are key components that can assist persons to secure and retain economically self-sustaining employment. The City will employ a variety of strategies to help alleviate poverty, including efforts to stimulate economic growth and job opportunities, and to provide Santa Ana residents with the skills and abilities . required to take advantage of those opportunities. More specifig�alz�l�'t: I e City will undertake a range of activities and services to combat poverty including: • Expand affordable housing opportunities throw`=housing rehabilitation, rental assistance, and '' ,. creation of new affordable housing units (via=l72�i construction an`d�r acquisition/rehabilitation). • Provide homeless assistance including preve"ntogyactivities„emergency gItgr, transitional housing, and access to permanent supportive i "'i g o ' 3 rt'unities. SuppoYf ervices will be sent s blended with these activities. * : • Enforce public safety to prevent ctltt in'tlsdf pm viC imlzii11 the poor. • Implement public facility improvements to l roye the ove'allll infrastructure of the City and eliminate public it groygments/infra hucture 2 � ggtively``rmjLacts residential • Provide job traTr ln,.g job-sea"rflh'iskills and'j=o ffliacement t6'Of6vide individuals living in poverty with employment portunrY that pay higher wages. • Pro[oYead,prowde TGTealdnnd?ejyerslonervices which provide youth living in poverty • Syae Housing Autfiorttygwill cod ipue to implditidnt the Family Self -Sufficiency (FSS) program, _> whj h yvill provide reriip''Lassistaritjftife skills training and referrals to employment training for Actions planned to structure The City of Santa Ana will strengthen institutional structures and enhance coordination between public and private housing and social service agencies, and foster assisted housing improvements and resident Initiatives. The City works closely with local institutions to initiate programs that link economic incentives with neighborhood and community development objectives, including building relationships with neighborhood associations, community -based lending agencies, nonprofits, and educational institutions. The City also supports programs aimed at enhancing coordination among various City departments. The City will continue to utilize a network of referrals, contacts and partnerships to Annual Action Plan 2019 49 OMB Control No: 2506-0117 (exp. 0613012018) 75C-55 Implement the strategies outlined in the Consolidated Plan. In the area of housing, the City will continue to build its relationship with local housing providers such as private developers, nonprofit developers, and neighboring housing authorities, to ensure that limited housing resources are utilized in the most efficient and effective manner possible. The City also will continue to participate in the regional Continuum of Care as board members and on subcommittees in order to coordinate with neighboring jurisdictions to reduce homelessness in our community. Actions planned to enhance coordination between service agencies The Orange County ESG grantees (County of Orange of Santa Ana) have developed the Orange county:E review and fund ESG subrecipients throughout the Cc approach has streamlined the appllcatiQn and review understand the impacts of funding decksn3Future :� and monitoring forms and other actionsbet�er�sen a City staff serve on the Continuum of are Bo��d, sti6r efforts. Public agencies, nonpk provision of affordable and and pubs &Md private housing and social V, of Anaheim, City=nGarden Grove, and the City laborative as a unifif d pproach to request, y and in.each jurisdtio ichis collaborative t*° Allowed aSe,�S d4�hwed the gran te' ��o better Ila6ye efforts will include unified invoice our hoi iglos and at -risk of homeless families. mittees drZdare involved in several regional Annual Action Plan 2019 play an integral role in the 6111 OMB Control No; 2506-0117 (exp. 0613012018) 75C-56 Program Specific Requirements AP-90 Program Specific Requirements — 91.220(I)(1,2,4) Introduction: Community Development Block Grant Program (CDBG) Reference 24 CFR 91.220(I)(1) Projects planned with all CDBG funds expected to be available durlh$ie year are identified in the �` Projects Table. The following identifies program income that is p.v Ia61e for use that is included in projects to be carried out. f 1. The total amount of program Income that wil next program year and that has not yet been ro 2, The amount of proceeds from section 108 loe year to address the priority needs and specific c Asa... strategic plan. �. 3. The amount of surplus funds from �lEb�Nhe 4. The amount of any grant funds returifrs'tl to tP has not been included in @,prriior statemen` yr pl 5. The amount of inco ", '" a rotriloat-funded rie t„ Total Program Incof, 1. 2. The e's�ted percentage benefit pe�sQ of low and ml of one, two orttee Vears ma benefit of 70% of CDB, funds income. Specify the og received Eefurg the start of the t -0 275,039 ntees that will be usecl?��; ring the s identified in the grante `s 0 0 the planned use 0 0 275,039 'ii&s that will be used for activities that Pa. 11 incoi).i .Overall Benefit -A consecutive period A to determine that a minimum overall to benefit persons of low and moderate it include this Annual Action Plan. 0 70.00% HOME Investment Partnership Program (HOME) Reference 24 CFR 91.220(I)(2) 1. A description of other forms of investment being used beyond those identified in Section 92.205 is as follows: The City of Santa Ana does not use HOME funds in any other manner other than those described in Annual Action Plan 2019 51 OMB Control No: 2506-0117 (up. 0613012018) 75C-57 Section 92.205(b). 2. A description of the guidelines that will be used for resale or recapture of HOME funds when used for homebuyer activities as required In 92.254, is as follows: 3. 4. 1. 2. NA A description of the guidelines for resale or recapture that e with HOME funds? See 24 CFR 92.254(a)(4) are as follows: _s rehabilitated with HOME funds along with a will be used under 24 CFR 92.206(b), are as I The City of Santa Ana has no plans meets HUD requ affordability of units acquired : that is required that (may include.as attachment) for eligible activities under five program prevention, rapid re -housing 3tion System (HMIS) costs, as well as allowable ions go through an open and transparent proposal is responsible for ensuring that the ESG Program is federal rules and regulations. shed centralized or coordinated assessment system that that centralized or coordinated assessment system. The County of Orange in collaboration with the CoC, the OC Commission to End Homelessness, and other ESG entitlement jurisdictions including the City, will utilize assessment and evaluation Instruments developed in consultation with the HMIS lead agency and previously funded HPRP grantees. The County ensures ongoing coordination of program design and eligibility standards. The City provides funding to 2-1-1 Orange County, the County's Continuum of Care administrator of the HMIS data entry system. Again in FY 19/20, funding will be provided for HMIS data, Coordinated Entry and technical assistance. 2-1-1 Orange County also administers the vulnerability Index - Annual Action Plan 2019 52 OMB Control No: 250G0117 (exp. 06/30/2018) 75C-58 Service Prioritization Decision Assistance Tool (VI-SPDAT) to prioritize chronically homeless individuals for affordable housing opportunities. 3. Identify the process for making sub -awards and describe how the ESG allocation available to private nonprofit organizations (including community and faith -based organizations). In FY 17/18, the Orange County ESG Collaborative (County of Orange, City of Anaheim, City of Garden Grove, and the City of Santa Ana) released one Request for Proposals as a unified approach to request, review and fund ESG subrecipients. Any 501 (c)(3) organization in good standing was able to submit a request for funding for eligible ESG activities=%application had a renewable option that was exercised for FY19/20 ESG funding. This c' I ative approach has streamlined the . c nz application and review process and allows the grantee ?tg,'7ete�al,pderstand the impacts of funding decisions. Future Collaborative efforts will includtied invoice"aii monitoring forms and other actions to better serve homeless and at -risk ofhgi€Tess families, Following the Collaborative review, the recomr�`" atlons for unding is cons�d red by the Community Redevelopment and Housing COmm15510 fhefore',)aI g considereAM (!adopted by the City Council. Allocations are made �1'Fonsideration of ring that program funds would be allocated toward eligible activities irrnes of hod' fA sness prevention, rapid -rehousing, shelter, data and street outreachyy 4. If the jurisdidionia�ableomeet the imeles5�att�«,tronlequirement in 24 CFR 576.405(a), the j�ft(j;llction idgspecify Its�plati for re I' out to and consulting with homeless or former';! omeles individuals considering policies and funding decisions regarding facilities ands°ervice3�u�dgd under G. The,Consults ancEl�Corks wrththe CountyarCoC'homeless services staff as well as local 44 Yy ho e ss service prowl 1 hom'ea 9sadvocac g oups, the OC Homeless Task Force, ACC-OC Homeless -task Force as w I s neiglt2in ng cities and homeless advocates. A previously homeless individual F#rtjcipated on the EG RFP Fy7/18 funding review panel which FY 19/20 awards are based upon.diIduals who wefe previously homeless provide assistance in outreach and engagement seand pro _JR feedback to staff. In addition, the CoC's strategy reflects the participation of all 3 I" J-1 fan County as well as individuals who are homeless or previously homeless, schools and aifio5t of additional organizations. 5. Describe performance standards for evaluating ESG. The City utilizes the HUD monitoring ESG handbook to monitor each program's performance to ensure that goals are on track and funds are used for eligible activities. On a quarterly basis, invoices are reviewed to ensure program compliance. In addition, the quarterly financial invoices are monitored by City Accounting staff. On -site monitoring of non-profit organizations is done by staff and by consultants for both program and financial records on an as -needed basis, or at least every Annual Action Plan 2019 53 OMB control No: 2506-0117(exp. 06/30/2018) 75C-59 three years. The City works closely with the OC ESG Collaborative to standardize as much as possible. Annual Action Plan 2019 54 OMB Control No: 2506-0117 (exp. 06/30/2018) 75C-60 AFFIDAVIT OF PUBLICATION STATE OF CALWORNIA, ) sa, County of Orange ) I am a citizen of the United States and it resident of the County aforesaid; I am over the age of eighteen years, and not a party to or interested in the above entitled matter. I am the principal clerk of The Orange County Register, a newspaper of general circulation, published in the city of Santa Ana, County of Orange, and which news. paper has been adjudged to be a newspaper of general circulation by the Superior Court of the County of Orange, State of California, under the date of November 19, 190$, Case No. A-21046, that the notice, of which the annexed is a true printed copy, has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to wit: March 11, 2019 "I certify (or declare) under the penalty of porjury under the laws of the Slate of California that the foregoing is true and corner'-, Executed at Santa Ana, Change County, California, on Datod: March l 1, 2019 Signature: SandrafCampos The Orange County Register 2190 S. Towne Centro Plata Anahelm, CA 92806 (714)196-2209 75C-61 r "PRO®F OF P UDLIC'ATI®N '�15 N111sIaIje,B1Nd,Si98pb; Los Ahgeles, CA 90017r '-; ""Tel:'�213)896.2260 Fax:.i?13)896-22�6 5TATE•OFCCALIFORNIA latra afitlzen-ofthe United StateSand a resident of the county aforesald'•lam oVerth'e-dg'e.of eighteen years, and not a party to or16terested inthe abode -entitled matter, I am the.principal clerk ofthe printerof La opinidp a ' newspaper of general circulation;' printedpnd;�iiTJZIsha dally.,inthe.cityof GtfS7tneles 'county of Los Angeles, and. wlRe 'neVvspaper as been adjudged 9 newspaper of generel circulation by;the Superio'r.Courtof'theCountyofL6s '.- Angeles,StAte ofCalifornla, render the date of July 28,1969,CasAumher; ' 950176;.that the'noticei ofwhich the . annexed'Is a pririted•copy, has been pubjlahirdfnveach regular and not:tn.any 9doplement thelreof on'.the following dafes, to: wit' WrOh 1I.- Ain the;year 20 T9 •Ifeerti%cc (or-dedlared)under•penafty' , ofpeJurythatthe foregoing.ls true aridcorrect., • ' . 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N6uquyNNANA3AoaCgnwAu ph�eb7vpdryvgn abeuCd . 1'I pWd.flhgd dNaorad f Dum��Mr,(hp W{n dd mA 0u3 frcng by QrAi OyydBop 7'd/Pndl liilnvb Nn9b 6pmg c0a Wah PhD Santa vdo rod, Napo moo; waN"Iron=a WIN. NommlIyAoman-Rom4a!,, DanTnv Ky H4100r,9 exwarww '65C-63 CALIFORNIA NEWSPAPER SERVICE BUREAU DAILY JOURNAL CORPORATION Mulling Address; 916 E FIRST ST. 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Call your local ma th0 jjh4jrraajle nr 7 dav� ,sI 2 16r46 u e o4, CNN3t-32"427i BUSINESS JOURNAL, RIVERSIDE (051) 784-0111 10�)ry9� ead lotely P%. or 10l THE REGISTER DAILY COMMERCE, LOS ANGELES (213j 220-SMO Owing the 5:0n0 s^ City Councllj L09 ANGELES bARY JOURNAL, L09 ANGELES (213) 22H300 ORANGE COUNTY REPORTER, SANTA ANA (714) 643.2027 atn^�a Center Plar21 Shcnta SAN FRANCISCO DAILY JOURNAL, SA14 FRANC19C0 (800)640-0829 tn7�1, AdIC Pe to lr�a ImtaMest BAN JOSE POST-FECORO, BAN -LOSE GAILY (408) 287-4866 ara IhmllflIed THE RECORDER, SACRAMENTO (016)444.2355 to appear at This THE DAILYTRANSCRIPT, SAN DISCO (619)232-3488 time, THE INTER-CITYExPRESS, OAKLANO (610) 272d747 w yo}}u appear at the public It earing, you may oleo send our written eommerPa to cwncl, by math to IIIIIIIIIIIIIIIIIillllllll IIIIIIIIIII III�IIIIIIIIIIIIIII * A 0 0 0 0 0 5 0 6 4 2 8 7 75C-64 CALIFORNIA NEWSPAPER SERVICE BUREAU DAILY JOURNAL CORPORATION Malling Address: 915 E FIRST ST, LOS ANGELES, CA 90012 Telephone (213) 229-6300 / Fax (213) 229-5451 Vlslt us @ WWW.LEGALADSTORE.COM DAVID FLORES SANTA ANA, CITY OF/COMM DEVAGENCY 20 CIVIC CENTER PLAZA M2MTH FL SANTA ANA, CA 92702-4058 COPY OF NOTICE Notice Type: HRG NOTICE OF HEARING Ad Description NOTICE OF PUBLIC HEARING, SPANISH To the right Is a copy of the notice you sent to us for publication In the LA OPINION. 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Cell your local BUSINESS JOURNAL, RIVERSIDE (981)704-0111 DAILY COMMERCE, LOS ANGELES (213) 229.5300 LOS ANGELES DAILY JOURNAL, LOS ANGELES (213) 22966300 ORANGE COUNTY REPORTER, SAWA ANA (714)8432027 SAN PRANCISCO DAILY JOURNAL, SAN FRANCISCO (800) 64(1.4829 SAN JOSE POST -RECORD, SAN JOSE (408) 2074866 THE DAILY RECORDER, SACRAMENTO (918)444-23M THE DAILY TRANSCRIPT, SAN DIEGO (019)232-3480 THE INTER -CRY EXPRESS, OAKLAND 110)2724747 I II II I, �IIu III I III � II II II II lu I I III � will I I I I III * A 0 0 0 0 0 5 0 6 5 6 5 4 t CNS 3263428 AVISC DE AUDIENCIA PUBUCA ANTE eL AYUNTAMIENTO DE LA CIUDAD DE SANTA ANrp CA. Le Cluded do Santa Ana dlmfa al poblloo a paaaalpar en el proe9ao tle tome tle doclaonaa. EI Bleularda avlao eels Wandv pmpomlonado Para quo uabd puaaa '..'be' progwtaa, he em oommto a. y maracas.. INannada ace ca delve wegealoe Npamen o pure uatedr Le moomendomoe Aud tamaa mile de la Aum la mclo Pe611as of coma elgme pre9unW. 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Won C le r e — tone Imo carnaggmb, par favor commum quese con el Mdata tle Deama90 rourntado a 714-807- 0601 v puede mylar un cone, de01r6 eo, a dlaesdy'sanU,ane.arg. 7odos loco n comes a pummel concmdm@s accepter punW do goal Uganda arias. dlsporNes Para Inepe�dn ppelaca en Iq DOdtn dal SeseWlo do, cons to duranra hoado lea.V puNlada an a ago web do Ia Cbdad at Nemec grace de M rouddn del Canealo an: hu;: Ar eaanmo• meowcat mramoasp 8111" UANIs DOespedgl, favarda flamer a 22(71d) SBT NtumnovyIl46i W41011 thoolll chotmm Ie(714) 647-5363. SR4M9 CNSJ2534280 LADPU110N 75C-65 THONG BpAD VA PHIIZU DDD TB4N TtvTHANHFiPHG SANTTAANA C& UA Thdnb h6�Slapnto am pn1n uMaa 9 A hlIch deem hl n gy��IIy°9I nh. h°nqq beg so GOI �vb�dup V'M c fmg�tdl°ck rgea thang b o vA caggqn Yvldo DO Dll khbh nup d Ilan iao vbl Won leal Ryboo Fhl@en bh6 ban CMD c'nBn u c0 p6t by B01 nab. M%p09 rtfy-6i ey vaolfi5 Do1dnga °44 cnhlauh* nggay 9aV WO,chlay PMBn M1ppp kfn Ipl Gy CWntl1 Chbnta�pp, n22 Celfom�qlasB82701 �7ai�d yMh Gtq nWA go C4 hf9n d9dl9n�v°�dw Gdm nhynOnB CM1n yLIa a b a d Cog Id ° 119n h@ I�ttNt Ph n T° Ml h Milo bh751 Clnwaa®san�°aaro°ADrg "goa g71 e�rell 70n VV. nhan Ih6m Hidno Hn. TAI oA cac . OaD Wd IHI811 Nan Y9 bAlnka� mgasu nao M. chuvng unhh treByVan ads n Cho cang�di Phbnp Th4aeg�kkq Hpld ndguUoDDng bias lam I�ren9IIlMb W p ho VAPhE'rdo 8htr 6 u hl yF»yx°�se h9p Wa H9 ddng w a. w0rwc00lglaDM.Mp 61 B L o preguntelaTan e�spaflol. favor NAu cBn11affi Ig I U'4) 91�g226�1.t, xln d16n Dropl clio Trom In p14) B47• 535% 6114119 GNG•32634299 NGUOI WET 75C-66 Community: Annual Action Plan Public Comment Period - March 26th to April 27th Dear Nixle User, The Fiscal Year 2019-2020 Annual Action Plan details the housing, community and economic development needs for the City of Santa Ana, and the priorities, strategies, and projects that will be undertaken by the City to address those needs with Community Development Block Grant Program (CDBG), Home Investment Partnerships Program (HOME,) and Emergency Solutions Grants Program (ESG) funds that the City receives fiom the U.S. Department of Housing and Urban Development (HUD). Funds are intended to provide low -to moderate -income households with affordable housing, a healthy and safe living environment, and expanded economic opportunities. Eligible activities include community facilities and improvements, housing rehabilitation and preservation, homeless activities, development activities, public services, economic development, planning, and program administration. The estimated amount of funding the City anticipates it will receive for FY 2019-2020 is as follows: CDBG HOME ESG $5,816,959 $1,7 8 33,004 $475,700 The draft Annual Action Plan is available for public review during regular business hours between 8:00 am. and 5:00 p.m., Monday through Thursday in the offices of the Community Development Agency, 20 Civic Center Plaza, 6th Floor, Office of the Clerk of the Council, 20 Civic Center Plaza, 8th Floor, and the Main Public Library, 26 Civic Center Plaza, Santa Ana, California and on the City's Website under Community Development Agency https://www.ci santa-ana ca us/departments/conitnunity-development-agency/documegts. The final Annual Action Plan will be presented to the City Council for review and approval in May 2019. How To Make Comments - The 30-day public comment period for the 2019-2020 Annual Action Plan wil l commence on March 26, 2019 and will end at 4:30 p.m, on April 27, 2019. You may send your written comments to Terri Eggers, Senior Community Development Analyst, at teagers@santa-ana.org; or by mail to City of Santa Ana, 20 Civic Center Plaza — M25, Attn: Terri Eggers, Santa Ana, CA 92701. Who To Contact For Questions - Should you have any questions, please contact Terri Eggers, Senior Community Development Analyst, at (714) 647-5378 or by e-mail to tegg-ers@santa ana.org. 75C-67 Citizen Participation Comments The Annual Action Plan was available for a 30-day public comment period from March 26 — April 27, 2019 online and in hard copy, Public hearings were held on both March 271h and June 4, 2019. Notification of the public comment period and public hearings were published in local newspapers in three languages on March 11 and on May 14, 2019. 75C-68 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JUNE 18, 2019 TITLE: PUBLIC HEARING TO ADOPT VEHICLE MILES TRAVELED THRESHOLDS AND ADOPTION OF LOCAL GUIDELINES FOR IMPLEMENTING THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (STRATEGIC PLAN NO. 5, 2) RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on ls' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Adopt a resolution approving Vehicle Miles Traveled thresholds for California Environmental Quality Act compliance related to transportation analysis. 2. Adopt a resolution adopting the 2019 Local Guidelines for Implementing the California Environmental Quality Act for the City of Santa Ana. PLANNING COMMISSION ACTION At its regular meeting on May 28, 2019, the Planning Commission by a vote of 6:0 (Commissioner Benavides absent) recommended City Council approval of the Local Guidelines for Implementing the California Environmental Quality Act for the City of Santa Ana. In addition, on February 25, 2019, the Planning Commission conducted a work study session and provided input and direction to facilitate implementing Vehicle Miles Traveled as a measure for evaluating transportation impacts. DISCUSSION The California Environmental Quality Act (CEQA) is California's most comprehensive environmental law. Generally, it requires public agencies to evaluate the environmental effects of a project before action is taken. CEQA also aims to prevent significant environmental effects from occurring as a result of agency actions by requiring agencies to avoid or reduce, when feasible, the significant environmental impacts of their decisions. On December 28, 2018, the Office of Administrative Law approved a comprehensive update to the state CEQA Guidelines which also included implementation metrics for Vehicle Miles Traveled (VMT). Since VMT is a new method in analyzing transportation impacts, a work study session was held with the Planning Commission to gather input. Following the meeting, the Local 75D-1 Vehicles Miles Traveled & Local CEQA Guidelines June 18, 2019 Page 2 CEQA guidelines were revised to include thresholds specific to Santa Ana. Staff is proposing to adopt the Vehicle Miles Traveled thresholds and include them as part of the Local CEQA Guidelines. Vehicle Miles Traveled Thresholds VMT is the new metric for transportation analysis which focuses on the overall miles traveled by vehicles within a region, resulting in automobile delay (Level of Service - LOS) that is no longer used as criteria for determining a significant environmental effect under CEQA. This approach has an added inherent emphasis on reducing greenhouse gas emissions. All cities in the State of California are required to adopt new VMT thresholds through a public hearing process no later than July 1, 2020. Therefore, Fehrs & Peers, an expert firm in VMT analysis, assisted in review and development of appropriate VMT thresholds for Santa Ana to be fully compliant with 2018 CEQA law (Exhibit 1). Work study sessions on vehicle miles traveled were conducted with the Planning Commission and the Environmental and Transportation Advisory Committee (ETAC) on February 25, 2019 and March 12, 2019, respectively. In addition, community outreach meetings were conducted on March 23 and 30, 2019. Vehicle Miles Traveled thresholds for Santa Ana have been incorporated within the draft Local CEQA Guidelines. As a result, automobile delay, as measured by LOS, generally no longer constitutes a significant environmental effect under CEQA. Adopting VMT thresholds however, does not preclude the City from using LOS analysis to comply with Congestion Management Plan requirements or to conduct project specific transportation analysis. Local CEQA Guidelines CEQA requires public agencies to adopt specific objectives, criteria and procedures for evaluating public and private projects that are undertaken or approved by such agencies. Best, Best and Krieger (BBK) assisted the City of Santa Ana in preparing a set of Local CEQA Guidelines that are in compliance with CEQA's requirements. These Guidelines reflect the recent changes in the State CEQA Guidelines, relevant court opinions and implementation of vehicles miles traveled as the metric for transportation impacts (Exhibit 2). The Local Guidelines provide step-by-step procedures for evaluating projects prior to approval including: 75D-2 Vehicles Miles Traveled & Local CEQA Guidelines June 18, 2019 Page 3 • General Provisions & Definitions • Time Limits • Initial Study • Exemptions • Negative Declarations/Mitigated Negative Declarations • Environmental Impact Reports • Forms The Local CEQA Guidelines will become effective upon adoption. New projects or projects that have not circulated CEQA documents for public review before the effective date must comply with the City's new CEQA Guidelines. ENVIRONMENTAL IMPACT No environmental impact is anticipated from adopting Vehicle Miles Travel thresholds or adopting Local CEQA Guidelines. The City of Santa Ana adoption of the attached Resolutions is not a project under State CEQA Guidelines section 15378(b)(5) because it involves an administrative activity involving process only and would not result in any environmental impacts. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's effort to meet Goal #5 — Community Health, Livability, Engagement & Sustainability, Objective #2 (Expand opportunities for conservation and environmental sustainability). FISCAL IMPACT There is no fiscal impact associated with this action. Minh Thai Executive Director Planning and Building Agency SK:Ia M110cal CEQA GuidelineslRFCA VMT and Local CEQA Guidelines.doc Fuad S. d Executive Public We Exhibits: 1. Vehicle Miles Traveled Resolution 2. Local CEQA Guidelines Resolution 7 PE, PLS Agency 75D-3 75D-4 EXHIBIT 7 jmf 5120/19 RESOLUTION NO.2019-XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ADOPTING "VEHICLE MILES TRAVELED" THRESHOLDS OF SIGNIFICANCE FOR PURPOSES OF ANALYZING TRANSPORTATION IMPACTS UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT WHEREAS, the California Environmental Quality Act Guidelines ("CEQA Guidelines") encourage public agencies to develop and publish generally applicable "thresholds of significance" to be used in determining the significance of a project's environmental effects; and WHEREAS, CEQA Guidelines section 15064.7(a) defines a threshold of significance as "an identifiable quantitative, qualitative or performance level of a particular environmental effect, noncompliance with which means the effect will normally be determined to be significant by the agency and compliance with which means the effect normally will be determined to be less than significant'; and WHEREAS, CEQA Guidelines section 15064.7(b) requires that thresholds of significance must be adopted by ordinance, resolution, rule, or regulations, developed through a public review process, and be supported by substantial evidence; and WHEREAS, pursuant to CEQA Guidelines section 15064.7(c), when adopting thresholds of significance, a public agency may consider thresholds of significance adopted or recommended by other public agencies provided that the decision of the agency is supported by substantial evidence; and WHEREAS, Senate Bill 743, enacted in 2013 and codified in Public Resources Code section 21099, required changes to the CEQA Guidelines regarding the criteria for determining the significance of transportation impacts of projects; and WHEREAS, in 2018, the Governor's Office of Planning and Research ("OPR") proposed, and the California Natural Resources Agency certified and adopted, new CEQA Guidelines section 15064.3 that identifies vehicle miles traveled ("VMT°) — meaning the amount and distance of automobile travel attributable to a project — as the most appropriate metric to evaluate a project's transportation impacts; and WHEREAS, as a result, automobile delay, as measured by "level of service" and other similar metrics, generally no longer constitutes a significant environmental effect under CEQA; and WHEREAS, CEQA Guidelines section 15064.3 goes into effect on July 1, 2020, though public agencies may elect to be governed by this section immediately; and Resolution No. 2019-XXX Page 1 of 5 75D-5 jmf 5/20119 WHEREAS, the City of Santa Ana, following internal study and a public review process consisting of staff presentations before the Planning Commission and the Environmental and Transportation Committee, and two public outreach meetings, wishes to adopt VMT thresholds of significance for determining the significance of transportation impacts; and WHEREAS, on June 18, 2019, the City Council held a duly noticed public hearing to consider this Resolution, at which all persons interested were given an opportunity to be heard. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Ana as follows: Section 1. The City of Santa Ana hereby adopts the VMT thresholds of significance for transportation impact analysis under CEQA that are attached as Exhibit A. These thresholds of significance have been developed through a public review process and are supported by substantial evidence, as required by CEQA Guidelines section 15064.7. Section 2. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this day of 2019. APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By. IV(,,, -f,."L John M. Funk Assistant City Attorney Miguel A. Pulido Mayor Resolution No. 2019-XXX Page 2 of 5 75D-6 jmf 5/20/19 AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, NORMA MITRE, Acting Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2019-XXX to be the original resolution adopted by the City Council of the City of Santa Ana on 2019. Date: Acting Clerk of the Council City of Santa Ana Resolution No. 2019-XXX Page 3 of 5 75D-7 jmf 5120/19 EXHIBIT A Table 1 VMT Impact Thresholds Methods I Project Threshold I Cumulative Threshold I Land Use Plans (such as General Plans and Specific Plans) I Orange County Traffic Analysis Model (OCTAM) forecast of total daily VMT/SP. - To capture project effect, the same cumulative year population and employment growth totals should be used. The 'project' only influences land use allocation. • Consistency check with SCAG RTP/SCS. - Is the proposed project within the growth projections in the RTP/SCS? • Transit Priority Area (TPA) screening. • Low VMT area screening. • Project type screening. • VMT analysis using OCTAM forecast of total daily VMT/SP A significant impact would occur if the project VMT/SP (for the land use plan) exceeds 15% below the Countywide average. NA Presumed less than significant VMT impact for projects located in TPAs. Presumed less than significant VMT impact for projects located in low VMT generating model traffic analysis zones (TAZs). These TAZs generate total daily VMT/SP that is 15% less than the baseline level for the County. Local serving retail projects (Per OPR's Technical Advisory less than 50,000 square feet) and neighborhood schools are presumed to have a less than significant VMT impact. Projects that generate less than 110 daily trips do not require VMT analysis. A significant impact would occur if the project generates VMT/SP above 15% below the Countywide average. A significant impact would occur if the project caused total daily VMT within the City to be higher than the no project alternative under cumulative conditions. A significant impact would occur if the project is determined to be inconsistent with the RTP/SCS. Project presumption applies under cumulative conditions as long as project is consistent with SCAG RTP/SCS. Project presumption applies under cumulative conditions as long as project is consistent with SCAG RTP/SCS. Project presumption applies under cumulative conditions as long as project is consistent with SCAG RTP/SCS. A significant impact would occur if the project Is determined to be inconsistent with the RTP/SCS. A significant impact would occur if the project causes total daily VMT within the City to be higher than the no project alternative under cumulative conditions. This analysis should be performed using the 'project effect' method. Resolution No. 2019-)= Page 4 of 5 75D-8 jmf 5/20/19 Table 1 VMT Impact Thresholds Methods Project Threshold Cumulative Threshold Transportation Projects (thresholds may apply for SB 743 or GHG purposes) • OCTAM forecast of total A significant impact would A significant impact would occur citywide daily VMTI occur if the project increased if the project caused total daily the baseline VMT within the VMT within the City to be higher City. than the no build alternative under cumulative conditions. • Consistency check with SCAG NA A significant impact would occur RTP/SCS if the project is determined to be inconsistent with the RTP/SCS. I It is recommended that OCTAM is used to develop VMT estimates for transportation project impact assessment. However, the analyst must verify the model results for sensitivity to changes in VMT. Alternatively, if the model is not deemed appropriate, Robert Cevero's research on lane -mile elasticity and its relationship to VMT can be referenced. Resolution No. 2019-)= Page 5 of 5 75D-9 75D-10 EXHIBIT 2 LS 6.18.19 RESOLUTION NO. 2019-xx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ADOPTING LOCAL CEQA GUIDELINES FOR IMPLEMENTING THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (PUBLIC RESOURCES CODE §§ 21000 ET SEQ.) WHEREAS, the California Legislature has amended the California Environmental Quality Act ("CEQA") (Pub. Resources Code §§ 21000 et seq.), the Natural Resources Agency has amended the State CEQA Guidelines (Cal. Code Regs, Title 14, §§ 15000 et seq.), and the California courts have interpreted specific provisions of CEQA; and WHEREAS, Public Resources Code section 21082 requires all public agencies to adopt objectives, criteria and procedures for (1) the evaluation of public and private projects undertaken or approved by such public agencies, and (2) the preparation, if required, of environmental impact reports and negative declarations in connection with that evaluation; and WHEREAS, the City of Santa Ana has prepared local guidelines for implementing CEQA to make them consistent with the current provisions and interpretations of CEQA and the State CEQA Guidelines; and WHEREAS, on May 28, 2019, the Planning Commission held a duly noticed public hearing and recommended that the City Council adopt a resolution adopting the "2019 Local Guidelines for Implementing the California Environmental Quality Act". WHEREAS, on June 18, 2019, the City Council held a duly noticed public hearing to consider this Resolution, at which time all persons interested were given an opportunity to be heard. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Ana as follows: Section 1l. The City hereby adopts the "2019 Local Guidelines for Implementing the California Environmental Quality Act," attached hereto and incorporated herein as Attachment A, a copy of which is on file at the offices of the City and is available for inspection by the public. Section 2. It is the intent of the City to conform to the requirements of the State CEQA Guidelines and CEQA. If any of the specific procedures or provisions adopted herein should be in conflict with CEQA or the State CEQA Guidelines, then CEQA and the State Guidelines shall prevail. The City may administer its responsibilities under CEQA in any manner which meets the requirements of CEQA, notwithstanding the specific procedures set forth in the City's Local CEQA Guidelines. All future revisions to CEQA and the State CEQA Guidelines shall hereafter be considered to be part of the City's implementing procedures without further action by the City Council. Resolution No. 2019-xx Page 1 of 2 75D-11 LS 6.4.19 Section 3. The City Council finds that the adoption of the Local CEQA Guidelines is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. The adoption of this resolution will not have a significant environmental effect, therefore adoption of this resolution is exempt from CEQA pursuant to Section 15061(b)(3) of the State CEQA Guidelines, Section 4. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this. day of 2019. Miguel A. Pulido Mayor APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney Lisa Storck Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Norma Mitre, Acting Clerk of the Council, do hereby certify the attached Resolution No. 2019 - to be the original resolution adopted by the City Council of the City of Santa Ana on .2019. Date: Acting Clerk of the Council Resolution No. 2019-xx Page 2 of 2 75D-12 2019 LOCAL GUIDELINES FOR IMPLEMENTING THE CALIFORNIA ENVIRONMENTAL QUALITY ACT W: CITY OF SANTA ANA 75D-13 TABLE OF CONTENTS Page 1. GENERAL PROVISIONS, PURPOSE AND POLICY.................................................1-1 1.01 General Provisions..............................................................................................1-1 1.02 Purpose................................................................................................................1-1 1.03 Applicability.......................................................................................................1-1 1.04 Reducing Delay and Paperwork..........................................................................1-2 1.05 Compliance With State Law...............................................................................1-3 1.06 Terminology........................................................................................................1-3 1.07 Partial Invalidity..................................................................................................1-3 1.08 Electronic Delivery of Comments and Notices..................................................1-3 1.09 The City May Charge Reasonable Fees For Reproducing Environmental Documents..........................................................................................................1-4 1.10 Time of Preparation............................................................................................ 1-4 1.11 State Agency Furloughs......................................................................................1-5 2. LEAD AND RESPONSIBLE AGENCIES....................................................................2-1 2.01 Lead Agency Principle........................................................................................ 2-1 2.02 Selection of Lead Agency...................................................................................2-1 2.03 Duties of a Lead Agency..................................................................................... 2-1 2.04 Projects Relating to Development of Hazardous Waste and Other Sites ...........2-3 2.05 Responsible Agency Principle............................................................................ 2-3 2.06 Duties of a Responsible Agency.........................................................................2-3 2.07 Response to Notice of Preparation by Responsible Agencies ............................2-4 2.08 Use of Final EIR or Negative Declaration by Responsible Agencies ................2-4 2.09 Shift in Lead Agency Responsibilities................................................................2-5 3. ACTIVITIES EXEMPT FROM CEQA.........................................................................3-1 3.01 Actions Subject to CEQA...................................................................................3-1 3.02 Ministerial Actions.............................................................................................. 3-1 3.03 Exemptions in General........................................................................................ 3-2 3.04 Preliminary Exemption Assessment...................................................................3-2 3.05 Notice of Exemption........................................................................................... 3-2 3.06 Disapproved Projects.......................................................................................... 3-3 3.07 Projects with No Possibility of Significant Effect .............................................. 3-3 -i- 75D-14 Q 5. TABLE OF CONTENTS (continued) Page 3.08 Emergency Projects............................................................................................ 3-3 3.09 Feasibility and Planning Studies......................................................................... 3-4 3.10 Rates, Tolls, Fares and Charges..........................................................................3-4 3.11 Pipelines within a Public Right -of -Way and Less Than One Mile in Length.................................................................................................................3-4 3.12 Pipelines of Less Than Eight Miles in Length .................................................... 3-5 3.13 Certain Residential Housing Projects................................................................. 3-6 3.14 Minor Alterations to Fluoridate Water Utilities ................................................ 3-14 3.15 Ballot Measures................................................................................................ 3-14 3.16 Transit Priority Project...................................................................................... 3-14 3.17 Roadway Improvements................................................................................... 3-14 3.18 Certain Infill Projects........................................................................................3-15 3.19 Exemption for Infill Projects in Transit Priority Areas .................................... 3-18 3.20 Exemption for Residential Projects Undertaken Pursuant to a Specific Plan ... 3-18 3.21 Other Specific Exemptions............................................................................... 3-19 3.22 Categorical Exemptions....................................................................................3-19 TIMELIMITATIONS....................................................................................................4-1 4.01 Review of Private Project Applications..............................................................4-1 4.02 Determination of Type of Environmental Document.........................................4-1 4.03 Completion and Adoption of Negative Declaration...........................................4-1 4.04 Completion and Certification of Final EIR......................................................... 4-1 4.05 Projects Subject to the Permit Streamlining Act.................................................4-1 4.06 Projects, Other Than Those Subject to the Permit Streamlining Act, with Short Time Periods for Approval........................................................................4-2 4.07 Waiver or Suspension of Time Periods.............................................................. 4-2 INITIALSTUDY............................................................................................................ 5-1 5.01 Preparation of Initial Study................................................................................. 5-1 5.02 Informal Consultation with Other Agencies....................................................... 5-1 5.03 Consultation with Private Project Applicant....................................................... 5-2 5.04 Projects Subject to NEPA...................................................................................5-2 5.05 An Initial Study................................................................................................... 5-3 75D-15 TABLE OF CONTENTS (continued) Page 5.06 Contents of Initial Study.....................................................................................5-3 5.07 Use of a Checklist Initial Study.......................................................................... 5-4 5.08 Evaluating Significant Environmental Effects .................................................... 5-4 5.09 Determining the Significance of Transportation Impacts ................................... 5-6 5.10 Mandatory Findings of Significant Effect.......................................................... 5-7 5.11 Mandatory Preparation of an EIR for Waste -Burning Projects .......................... 5-8 5.12 Development Pursuant To An Existing Community Plan And EIR................... 5-9 5.13 Land Use Policies............................................................................................. 5-10 5.14 Evaluating Impacts on Historical Resources .................................................... 5-10 5.15 Evaluating Impacts on Archaeological Sites .................................................... 5-11 5.16 Consultation with Water Agencies Regarding Large Development Projects ... 5-12 5.17 Subdivisions with More Than 500 Dwelling Units .......................................... 5-14 5.18 Impacts to Oak Woodlands............................................................................... 5-14 5.19 Climate Change And Greenhouse Gas Emissions............................................5-15 5.20 Energy Conservation......................................................................................... 5-18 5.21 Environmental Impact Assessment................................................................... 5-19 5.22 Final Determination..........................................................................................5-20 6. NEGATIVE DECLARATION.......................................................................................6-1 6.01 Decision to Prepare a Negative Declaration.......................................................6-1 6.02 Decision to Prepare a Mitigated Negative Declaration ....................................... 6-1 6.03 Contracting for Preparation of Negative Declaration or Mitigated Negative Declaration.......................................................................................................... 6-1 6.04 Notice of Intent to Adopt a Negative Declaration or Mitigated Negative Declaration.......................................................................................................... 6-1 6.05 Projects Affecting Military Services; Department of Defense Notification....... 6-3 6.06 Special Findings Required for Facilities Which May Emit Hazardous Air Emissions Near Schools...................................................................................... 6-4 6.07 Consultation with California Native American Tribes ....................................... 6-5 6.08 Identification of Tribal Cultural Resources and Process of Information After Consultation with the California Native American Tribe ......................... 6-6 6.09 Significant Adverse Impacts to Tribal Cultural Resources ................................. 6-7 75D-16 TABLE OF CONTENTS (continued) Page 6.10 Posting and Publication of Negative Declaration or Mitigated Negative Declaration.......................................................................................................... 6-8 6.11 Submission of Negative Declaration or Mitigated Negative Declaration to StateClearinghouse............................................................................................ 6-9 6.12 Special Notice Requirements for Waste- and Fuel-Buming Projects ............... 6-11 6.13 Consultation with Water Agencies Regarding Large Development Projects ... 6-11 6.14 Content of Negative Declaration...................................................................... 6-11 6.15 Types of Mitigation...........................................................................................6-12 6.16 Adoption of Negative Declaration or Mitigated Negative Declaration ............ 6-12 6.17 Mitigation Reporting or Monitoring Program for Mitigated Negative Declaration........................................................................................................ 6-13 6.18 Approval or Disapproval of Project..................................................................6-14 6.19 Recirculation of a Negative Declaration or Mitigated Negative Declaration... 6-14 6.20 Notice of Determination on a Project for Which a Proposed Negative or Mitigated Negative Declaration Has Been Approved ...................................... 6-15 6.21 Addendum to Negative Declaration.................................................................. 6-16 6.22 Subsequent Negative Declaration.....................................................................6-16 6.23 Private Project Costs.........................................................................................6-17 6.24 Filing Fees for Projects Which Affect Wildlife Resources .............................. 6-17 7. ENVIRONMENTAL IMPACT REPORT..................................................................... 7-1 7.01 Decision to Prepare an EIR................................................................................. 7-1 7.02 Contracting for Preparation of EIRs................................................................... 7-1 7.03 Notice of Preparation of Draft EIR..................................................................... 7-1 7.04 Special Notice Requirements for Affected Military Agencies ........................... 7-2 7.05 Environmental Leadership Development Project...............................................7-3 7.06 Preparation of Draft EIR..................................................................................... 7-4 7.07 Consultation with California Native American Tribes ....................................... 7-4 7.08 Identification of Tribal Cultural Resources and Process of Information After Consultation with the California Native American Tribe ......................... 7-5 7.09 Significant Adverse Impacts to Tribal Cultural Resources ................................. 7-7 7.10 Consultation with Other Agencies and Persons .................................................. 7-7 7.11 Early Consultation on Projects Involving Permit Issuance.................................7-9 -iv- 75D-17 TABLE OF CONTENTS (continued) Page 7.12 Consultation with Water Agencies Regarding Large Development Projects ..... 7-9 7.13 Airport Land Use Plan ...................................................................................... 7-10 7.14 General Aspects of an EIR................................................................................7-10 7.15 Use of Registered Consultants in Preparing EIRs............................................ 7-10 7.16 Incorporation by Reference............................................................................... 7-11 7.17 Standards for Adequacy of an EIR................................................................... 7-11 7.18 Form and Content of EIR.................................................................................. 7-11 7.19 Consideration and Discussion of Significant Environmental Impacts ............. 7-13 7.20 Environmental Setting...................................................................................... 7-14 7.21 Analysis of Cumulative Impacts.......................................................................7-15 7.22 Analysis of Mitigation Measures......................................................................7-17 7.23 Analysis of Alternatives in an EIR................................................................... 7-18 7.24 Analysis of Future Expansion........................................................................... 7-20 7.25 Notice of Completion of Draft EIR; Notice of Availability of Draft EIR........ 7-21 7.26 Submission of Draft EIR to State Clearinghouse ............................................. 7-23 7.27 Special Notice Requirements for Waste- And Fuel -Burning Projects .............. 7-25 7.28 Time For Review of Draft EIR; Failure to Comment ....................................... 7-25 7.29 Public Hearing on Draft EIR............................................................................. 7-26 7.30 Response to Comments on Draft EIR............................................................... 7-26 7.31 Preparation and Contents of Final EIR............................................................. 7-27 7.32 Recirculation When New Information Is Added to EIR...................................7-27 7.33 Certification of Final EIR................................................................................. 7-28 7.34 Consideration of EIR Before Approval or Disapproval of Project ................... 7-29 7.35 Findings.............................................................................................................7-29 7.36 Special Findings Required for Facilities Which May Emit Hazardous Air Emissions Near Schools.................................................................................... 7-30 7.37 Statement of Overriding Considerations...........................................................7-31 7.38 Mitigation Monitoring or Reporting Program for EIR.....................................7-31 7.39 Notice of Determination................................................................................... 7-33 7.40 Disposition of a Final EIR................................................................................ 7-35 7.41 Private Project Costs.........................................................................................7-35 -v- 75D-18 TABLE OF CONTENTS (continued) Page 7.42 Filing Fees for Projects Which Affect Wildlife Resources..............................7-35 8. TYPES OF EIRS............................................................................................................. 8-1 8.01 EIRs Generally.................................................................................................... 8-1 8.02 Tiering.................................................................................................................8-1 8.03 Project EIR..........................................................................................................8-2 8.04 Subsequent EIR................................................................................................... 8-2 8.05 Supplemental EIR...............................................................................................8-3 8.06 Addendum to an EIR.......................................................................................... 8-4 8.07 Staged EIR ..........................................................................................................8-4 8.08 Program EIR....................................................................................................... 8-4 8.09 Use of a Program EIR with Subsequent EIRs and Negative Declarations ......... 8-5 8.10 Use of an EIR from an Earlier Project................................................................ 8-6 8.11 Master EIR.......................................................................................................... 8-6 8.12 Focused EIR........................................................................................................ 8-7 8.13 Special Requirements for Redevelopment Projects ............................................ 8-8 9. AFFORDABLE HOUSING...........................................................................................9-1 9.01 Streamlined, ministerial approval process for affordable housing projects ........ 9-1 9.02 Housing Sustainability Districts.......................................................................9-11 10. CEQA LITIGATION....................................................................................................10-1 10.01 Timelines...........................................................................................................10-1 10.02 Mediation and Settlement.................................................................................10-1 10.03 Administrative Record......................................................................................10-1 11. DEFINITIONS..............................................................................................................11-1 11.01 "Agricultural Employee"..................................................................................11-1 11.02 "Applicant".......................................................................................................11-1 11.03 "Approval" ...................... ................... ............................................................... 11-1 11.04 "Baseline".........................................................................................................11-2 11.05 "California Native American Tribe".................................................................11-2 11.06 "Categorical Exemption"..................................................................................11-2 11.07 "Census -Defined Place"....................................................................................11-2 11.08 "CEQA"............................................................................................................11-2 75D-19 TABLE OF CONTENTS (continued) Page 11.09 "City.................................................................................................................. 11-2 11.10 "Clerk"..............................................................................................................11-2 11.11 "Community -Level Environmental Review"...................................................11-2 11.12 "Consultation"...................................................................................................11-3 11.13 "Cumulative Impacts".......................................................................................11-3 11.14 "Cumulatively Considerable "...........................................................................11-3 11.15 "Decision -Making Body„.................................................................................11-3 11.16 "Developed Open Space".................................................................................11-3 11.17 "Development Project"....................................................................................11-3 11.18 "Discretionary Project"..................................................................................... 11-3 11.19 "EIR................................................................................................................... 11-4 11.20 "Emergency .. ........... ..................................................... ..................................... 11-4 11.21 "Endangered, Rare or Threatened Species"......................................................11-4 11.22 "Environment"..................................................................................................11-4 11.23 "Feasible"..........................................................................................................11-5 11.24 "Final EIR".......................................................................................................11-5 11.25 "Greenhouse Gases".........................................................................................11-5 11.26 "Guidelines" or "Local Guidelines".................................................................11-5 11.27 "Highway„........................................................................................................11-5 11.28 "Historical Resources"......................................................................................11-5 11.29 "Infill Site"..................................................................................:.....................11-6 11.30 "Initial Study .. ................................................................................................... 11-6 11.31 "Jurisdiction by Law".......................................................................................11-7 11.32 "Land Disposal Facility.....................................................................................11-7 11.33 "Large Treatment Facility„...............................................................................11-7 11.34 "Lead Agency....................................................................................................11-7 11.35 "Low- and Moderate -Income Households"...................................................... I 1-7 11.36 "Low -Income Households"..............................................................................11-7 11.37 "Low -Level Flight Path"...................................................................................11-7 11.38 "Lower Income Households"............................................................................11-8 11.39 "Major Transit Stop...........................................................................................11-8 -vii- 75D-20 TABLE OF CONTENTS (continued) Page 11.40 "Metropolitan Planning Organization" or"MPO.. ...........................................11-8 11.41 "Military Impact Zone".....................................................................................11-8 11.42 "Military Service".............................................................................................11-8 11.43 "Ministerial".....................................................................................................11-8 11.44 "Mitigated Negative Declaration" or "MND"..................................................11-9 11.45 "Mitigation"......................................................................................................11-9 11.46 "Negative Declaration" or "ND"......................................................................11-9 11.47 "Notice of Completion"....................................................................................11-9 11.48 "Notice of Determination"................................................................................11-9 11.49 "Notice of Exemption".....................................................................................11-9 11.50 "Notice of Preparation"..................................................................................... I 1-9 11.51 "Oak"..............................................................................................................11-10 11.52 "Oak Woodlands"...........................................................................................11-10 11.53 "Offsite Facility...............................................................................................11-10 11.54 "Person"..........................................................................................................11-10 11.55 "Pipeline".......................................................................................................11-10 11.56 "Private Project".............................................................................................11-10 11.57 "Project"..........................................................................................................11-10 11.58 "Project -Specific Effects"...............................................................................11-11 11.59 "Public Water System"...................................................................................11-11 11.60 "Qualified Urban Use"....................................................................................11-11 11.61 "Residential"...................................................................................................11-11 11.62 "Responsible Agency .. .................................................................................... 11-11 11.63 "Riparian Areas"............................................................................................11-11 11.64 "Roadway„.....................................................................................................11-12 11.65 "Significant Effect".........................................................................................11-12 11.66 "Significant Value as Wildlife Habitat"........................................................11-12 11.67 "Special Use Airspace"...................................................................................11-12 11.68 "StafP'.............................................................................................................11-12 11.69 "Standard".......................................................................................................11-12 11.70 "State CEQA Guidelines"...............................................................................11-13 -viii- 75D-21 12. 13. TABLE OF CONTENTS (continued) 11.71 "Substantial Evidence"..................................................................... 11.72 "Sustainable Communities Strategy" ................................................. 11.73 "Tiering,'............................................................................................ 11.74 "Transit Priority Area"....................................................................... 11.75 "Transit Priority Project'................................................................... 11.76 "Transportation Facilities"................................................................. 11.77 "Tribal Cultural Resources"............................................................... 11.78 "Trustee Agency................................................................................. 11.79 "Urban Growth Boundary„................................................................ 11.80 "Urbanized Area"............................................................................... 11.81 "Water Acquisition Plans"................................................................. 11.82 "Water Assessment' or "Water Supply Assessment.' ....................... 11.83 "Water Demand Project'................................................................... 11.84 "Waterway»....................................................................................... 11.85 "Wetlands"......................................................................................... 11.86 "Wildlife Habitat'.............................................................................. 11.87 "Zoning Approval"............................................................................ FORMS.......................................................................................................... COMMON ACRONYMS............................................................................. Page ......11-13 ......11-13 ......11-13 ......11-14 ......11-14 ......11-14 ......11-14 ......11-15 ......11-15 ......11-15 ......11-16 .....11-16 .....11-16 .....11-17 .....11-17 .....11-17 .....11-18 .......12-1 .......13-1 75D-22 Local Guidelines for Implementing the California Environmental Quality Act (2019) GENERAL PROVISIONS PURPOSE AND POLICY. LOCAL GUIDELINES FOR IMPLEMENTING THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (2019) 1. GENERAL PROVISIONS, PURPOSE AND POLICY. 1.01 GENERAL PROVISIONS. These Local Guidelines ("Local Guidelines") are to assist the City of Santa Ana ("City") in implementing the provisions of the California Environmental Quality Act ("CEQA"). These Local Guidelines are consistent with the Guidelines for the Implementation of CEQA ("State CEQA Guidelines"), which have been promulgated by the California Natural Resources Agency for the guidance of state and local agencies in California. These Local Guidelines have been adopted pursuant to California Public Resources Code Section 21082. 1.02 PURPOSE. The purpose of these Local Guidelines is to help the City accomplish the following basic objectives of CEQA: (a) To enhance and provide long-term protection for the environment, while providing a decent home and satisfying living environment for every Californian; (b) To provide information to governmental decision -makers and the public regarding the potential significant environmental effects of the proposed project; (c) To provide an analysis of the environmental effects of future actions associated with the project to adequately apprise all interested parties of the true scope of the project for intelligent weighing of the environmental consequences of the project; (d) To identify ways that environmental damage can be avoided or significantly reduced; (e) To prevent significant avoidable environmental damage through utilization of feasible project alternatives or mitigation measures; and (f) To disclose and demonstrate to the public the reasons why a governmental agency approved the project in the manner chosen. Public participation is an essential part of the CEQA process. Each public agency should encourage wide public involvement, formal and informal, in order to receive and evaluate public reactions to environmental issues related to a public agency's activities. Such involvement should include, whenever possible, making environmental information available in electronic format on the Internet, on a web site maintained or utilized by the public agency. 1.03 APPLICABILITY. These Local Guidelines apply to any activity that constitutes a "project," as defined in Local Guidelines Section 11.57, for which the City is the Lead Agency or a Responsible Agency. These Local Guidelines are also intended to assist the City in determining whether a 2019 City of Santa Ana Local Guidelines 1-1 ®Best Best & Krieger LLP 75D-23 Local Guidelines for Implementing the California Environmental Ouality Act (2019) GENERAL PROVISIONS, PURPOSE AND POLICY proposed activity constitutes a project that is subject to CEQA review, or whether the activity is exempt from CEQA. 1.04 REDUCING DELAY AND PAPERWORK. The State CEQA Guidelines encourage local governmental agencies to reduce delay and paperwork by, among other things: (a) Integrating the CEQA process into early planning review; to this end, the project approval process and these procedures, to the maximum extent feasible, are to run concurrently, not consecutively; (b) Identifying projects which fit within categorical or other exemptions and are therefore exempt from CEQA processing; (c) Using initial studies to identify significant environmental issues and to narrow the scope of Environmental Impact Reports (EIRs); (d) Using a Negative Declaration when a project, not otherwise exempt, will not have a significant effect on the environment; (e) Consulting with state and local responsible agencies before and during the preparation of an EIR so that the document will meet the needs of all the agencies which will use it; (f) Allowing applicants to revise projects to eliminate possible significant effects on the environment, thereby enabling the project to qualify for a Negative Declaration rather than an EIR; (g) Integrating CEQA requirements with other environmental review and consultation requirements; (h) Emphasizing consultation before an EIR is prepared, rather than submitting adverse comments on a completed document; (i) Combining environmental documents with other documents, such as general plans; 0) Eliminating repetitive discussions of the same issues by using EIRs on programs, policies or plans and tiering from statements of broad scope to those of narrower scope; (k) Reducing the length of EIRs by means such as setting appropriate page limits; (1) Preparing analytic, rather than encyclopedic EIRs; (m) Mentioning insignificant issues only briefly; (n) Writing EIRs in plain language; (o) Following a clear format for EIRs; (p) Emphasizing the portions of the EIR that are useful to decision -makers and the public and reducing emphasis on background material; (q) Incorporating information by reference; and (r) Making comments on EIRs as specific as possible. 1.05 COMPLIANCE WITH STATE LAW. These Local Guidelines are intended to implement the provisions of CEQA and the State CEQA Guidelines, and the provisions of CEQA and the State CEQA Guidelines shall be fully complied with even though they may not be set forth or referred to herein. 2019 City of Santa Ana Local Guidelines ©Best Best & Krieger LLP 75D-24 Local Guidelines for Implementing the California En imnmental Ouality Act (2019) GENERAL PROVISIONS PURPOSE AND POLICY. 1.06 TERMINOLOGY. The terms "must' or "shall" identify mandatory requirements. The terms "may" and "should" are permissive, with the particular decision being left to the discretion of the City. 1.07 PARTIAL INVALIDITY. In the event any part or provision of these Local Guidelines shall be determined to be invalid, the remaining portions that can be separated from the invalid unenforceable provisions shall continue in full force and effect. 1.08 ELECTRONIC DELIVERY OF COMMENTS AND NOTICES. Individuals may file a written request to receive copies of public notices provided for under these Local Guidelines or the State CEQA Guidelines. The requestor may elect to receive these notices via email rather than regular mail. Notices sent by email are deemed delivered when the staff person sending the email sends it to the last email address provided by the requestor to the City. Any request to receive public notices shall be in writing and shall be renewed annually. Individuals may also submit comments on the CEQA documentation for a project via email. Comments submitted via email shall be treated as written comments for all purposes. Comments sent to the City via email are deemed received when they actually arrive in an email account of a staff person who has been designated or identified as the point of contact for a particular proj ect. CEQA also requires the lead agency to make copies of certain environmental documents available in an electronic format (such as Draft Environmental Impact Reports, Draft Negative Declarations and Draft Mitigated Negative Declarations), upon request. 1.09 THE CITY MAY CHARGE REASONABLE FEES FOR REPRODUCING ENVIRONMENTAL DOCUMENTS. A public agency may charge and collect a reasonable fee from members of the public that request a copy of an environmental document, so long as the fee does not exceed the cost of reproduction. The kinds of "environmental documents" that CEQA specifically allows public agencies to seek reimbursement for include: initial studies, negative declarations, mitigated negative declarations, draft and final EIRs, and documents prepared as a substitute for an EIR, negative declaration, or mitigated negative declaration. The City may choose to make documents available to the public -at -large on its website or charge a reasonable fee for reproducing the document in hard -copy form, on compact discs, email attachments, or other digital transfers. Requests for documents made pursuant to the California Public Records Act must comply with the Government Code. (See, for example, Government Cade Section 6253.9 for information regarding providing documents in electronic format.) 2019 City of Santa Ana Local Guidelines 1-3 OBest Best & Krieger LLP 75D-25 Local Guidelines for implementing the California Environmental Quality Act (2019) GENERAL PROVISIONS PURPOSE AND POLICY 1.10 TIME OF PREPARATION Before granting any approval of a project subject to CEQA, the Lead Agency or Responsible Agency shall consider a Final EIR, Negative Declaration, Mitigated Negative Declaration, or another document authorized by the State CEQA Guidelines to be used in the place of an EIR or Negative Declaration. Choosing the precise time for CEQA compliance involves a balancing of competing factors. EMS, Negative Declarations, and Mitigated Negative Declarations should be prepared as early as feasible in the planning process to enable environmental considerations to influence project program and design and yet late enough to provide meaningful information for environmental assessment. With public projects, at the earliest feasible time, project sponsors shall incorporate environmental considerations into project conceptualization, design, and planning. CEQA compliance should be completed prior to acquisition of a site for a public project. To implement the above principles, the City shall not undertake actions conceming the proposed public project that would have a significant adverse effect or limit the choice of alternatives or mitigation measures, before completion of CEQA compliance. For example, the City shall not: (A) Formally make a decision to proceed with the use of a site for facilities which would require CEQA review, regardless of whether the City has made any final purchase of the site for these facilities, except that the City may designate a preferred site for CEQA review and may enter into land acquisition agreements when the City has conditioned its future use of the site on CEQA compliance. (B) Otherwise take any action that gives impetus to a planned or foreseeable project in a manner that forecloses alternatives or mitigation measures that would ordinarily be part of CEQA review of that public project. With private projects, the City shall encourage the project proponent to incorporate environmental considerations into project conceptualization, design, and planning at the earliest feasible time. While mere interest in, or inclination to support, a project does not constitute approval, a public agency entering into preliminary agreements regarding a project prior to approval shall not, as a practical matter, commit the agency to the project. For example, the City shall not grant any vested development entitlements prior to compliance with CEQA. Further, any such pre - approval agreement should, for example: (A) Condition the agreement on compliance with CEQA; (B) Not bind any party, or commit to any definite course of action, prior to CEQA compliance; (C) Not restrict the Lead Agency from considering any feasible mitigation measures and alternatives, including the "no project' alternative; and 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-26 Local Guidelines for Implementing the California Environmental Quality Act (2019) GENERAL PROVISIONS, PURPOSE AND POLICY. (D) Not restrict the Lead Agency from denying the project. The City's environmental document preparation and review should be coordinated in a timely fashion with the City's existing planning, review, and project approval processes. These procedures, to the maximum extent feasible, are to run concurrently, not consecutively. 1.11 STATE AGENCY FURLOUGHS. Due to budget concerns, the State may institute mandatory furlough days for state government agencies. Local agencies may also change their operating hours. Because state and local agencies may enact furloughs that limit their operating hours, if the City has time -sensitive materials or needs to consult with a state agency, the City should check with the applicable state agency office or with the City's attorney to ensure compliance with all applicable deadlines. 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-27 Local Guidelines for Implementing the California Environmental Quality Act (2019) LEAD AND RESPONSIBLE AGENCIES 2. LEAD AND RESPONSIBLE AGENCIES 2.01 LEAD AGENCY PRINCIPLE. The City will be the Lead Agency if it will have principal responsibility for carrying out or approving a project. Where a project is to be carried out or approved by more than one public agency, only one agency shall be responsible for the preparation of environmental documents. This agency shall be called the Lead Agency. 2.02 SELECTION OF LEAD AGENCY. Where two or more public agencies will be involved with a project, the Lead Agency shall be designated according to the following criteria: (a) If the project will be carried out by a public agency, that agency shall be the Lead Agency even if the project will be located within the jurisdiction of another public agency; or (b) If the project will be carried out by a nongovernmental person or entity, the Lead Agency shall be the public agency with the greatest responsibility for supervising and approving the project as a whole. The Lead Agency will normally be the agency with general governmental powers, rather than an agency with a single or limited purpose. (For example, a city that will provide a public service or utility to the project serves a limited purpose.) If two or more agencies meet this criteria equally, the agency that acts first on the project will normally be the Lead Agency. If two or more public agencies have a substantial claim to be the Lead Agency under either (a) or (b), they may designate one agency as the Lead Agency by agreement. An agreement may also provide for cooperative efforts by contract, joint exercise of powers, or similar devices. If the agencies cannot agree which agency should be the Lead Agency for preparing the environmental document, any of the disputing public agencies or the project applicant may submit the dispute to the Office of Planning and Research. Within 21 days of receiving the request, the Office of Planning and Research will designate the Lead Agency. The Office of Planning and Research shall not designate a Lead Agency in the absence of a dispute. A "dispute" means a contested, active difference of opinion between two or more public agencies as to which of those agencies shall prepare any necessary environmental document. A dispute exists when each of those agencies claims that it either has or does not have the obligation to prepare that environmental document. 2.03 DUTIES OF A LEAD AGENCY. As a Lead Agency, the City shall decide whether a Negative Declaration, Mitigated Negative Declaration or an EIR will be required for a project and shall prepare, or cause to be prepared, and consider the document before making its decision on whether and how to approve the project. The documents may be prepared by Staff or by private consultants pursuant to a contract with the City. However, the City shall independently review and analyze all draft and final EIRs or Negative Declarations prepared for a project and shall find that the EIR or Negative 2019 City of Santa Ana Local Guidelines 2-1 (OBest Best & Krieger LLP 75D-28 Local Guidelines for Implementing the California Environmental Ouality Act (2019) LEAD AND RESPONSIBLE AGENCIES Declaration reflects the independent judgment of the City prior to approval of the document. If a Draft EIR or Final EIR is prepared under a contract with the City, the contract must be executed within forty-five (45) days from the date on which the City sends a Notice of Preparation. (See Local Guidelines Section 7.02.) During the process of preparing an EIR, the City, as Lead Agency, shall have the following duties: (a) If a California Native American tribe has requested consultation, within 14 days after determining that an application for a project is complete or a decision to undertake a project, the City shall begin consultation with the California Native American tribes (see Local Guidelines Section 7.07); (b) Immediately after deciding that an EIR is required for a project, the City shall send to the Office of Planning and Research and each Responsible Agency a Notice of Preparation (Form "G") stating that an EIR will be prepared (see Local Guidelines Section 7.03); (c) Prior to release of an EIR, if the California Native American tribe that is culturally affiliated with the geographic area of a project requests in writing to be informed of any proposed project, the City shall begin consultation with the tribe consistent with California law and Local Guidelines Section 7.07; (d) The City shall prepare or cause to be prepared the Draft EIR for the project (see Local Guidelines Sections 7.06 and 7.18); (e) Once the Draft EIR is completed, the City shall file a Notice of Completion (Form "H") with the Office of Planning and Research (see Local Guidelines Section 7.25); (f) The City shall consult with state, federal and local agencies that exercise authority over resources that may be affected by the project for their comments on the completed Draft EIR (see, e.g., Local Guidelines Sections 5.02, 5.16, Section 7.26); (g) The City shall provide public notice of the availability of a Draft EIR (Form "K") at the same time that it sends a Notice of Completion to the Office of Planning and Research (see Local Guidelines Section 7.25); (h) The City shall evaluate comments on environmental issues received from persons who reviewed the Draft EIR and shall prepare or cause to be prepared a written response to all comments that raise significant environmental issues and that were timely received during the public comment period. A written response must be provided to all public agencies who commented on the project during the public review period at least ten (10) days prior to certifying an EIR (see Local Guidelines Section 7.30); (i) The City shall prepare or cause to be prepared a Final EIR before approving the project (see Local Guidelines Section 7.31); (j) The City shall certify that the Final EIR has been completed in compliance with CEQA and has been reviewed by the City Council (see Local Guidelines Section 7.33); and (k) The City shall include in the Final EIR any comments received from a Responsible Agency on the Notice of Preparation or the Draft EIR (see Local Guidelines Sections 2.07, 7.30 and 7.31). As Lead Agency, the City may charge a non -elected body with the responsibility of making a finding of exemption or adopting, certifying or authorizing environmental documents; however, such a determination shall be subject to the City's procedures allowing for the appeal of the CEQA determination of any non -elected body to the City. In the event the City Council has 2019 City of Santa Ana Local Guidelines 2-2 ®Best Best & Krieger LLP 75D-29 Local Guidelines for Implementing the California Environmental Quality Act (2019) LEAD AND RESPONSIBLE AGENCIES delegated authority to a subsidiary board or official to approve a project, the City hereby delegates to that subsidiary board or official the authority to make all necessary CEQA determinations, including whether an EIR, Negative Declaration, Mitigated Negative Declaration or exemption shall be required for any project. A subsidiary board or official's CEQA determination shall be subject to appeal consistent with the City's established procedures for appeals. 2.04 PROJECTS RELATING TO DEVELOPMENT OF HAZARDOUS WASTE AND OTHER SITES. An applicant for a development project must submit a signed statement to the City, as Lead Agency, stating whether the project and any alternatives are located on a site that is included in any list compiled by the Secretary for Environmental Protection of the California Environmental Protection Agency ("California EPA") listing hazardous waste sites and other specified sites located in the City's boundaries. The applicant's statement must contain the following information: (a) The applicant's name, address, and phone number; (b) Address of site, and local agency (city/county); (c) Assessor's book, page, and parcel number; and (d) The list which includes the site, identification number, and date of list. Before accepting as complete an application for any development project as defined in Local Guidelines Section 11.17, the City, as Lead Agency, shall consult lists compiled by the Secretary for Environmental Protection of the California EPA pursuant to Government Code Section 65962.5 listing hazardous waste sites and other specified sites located in the City's boundaries. When acting as Lead Agency, the City shall notify an applicant for a development project if the project site is located on such a list and not already identified. In the Notice of Intent to Adopt a Negative Declaration or Mitigated Negative Declaration (see Local Guidelines Section 6.04) or the Notice of Preparation of Draft EIR (see Local Guidelines Section 7.03), the City shall specify the California EPA list, if any, that includes the project site, and shall provide the information contained in the applicant's statement. This provision does not apply to projects for which applications have been deemed complete on or before January 1, 1992. 2.05 RESPONSIBLE AGENCY PRINCIPLE. When a project is to be carried out or approved by more than one public agency, all public agencies other than the Lead Agency that have discretionary approval power over the project shall be identified as Responsible Agencies. 2.06 DUTIES OF A RESPONSIBLE AGENCY. When it is identified as a Responsible Agency, the City shall consider the environmental documents prepared or caused to be prepared by the Lead Agency and reach its own conclusions on whether and how to approve the project involved. The City shall also both respond to consultation and attend meetings as requested by the Lead Agency to assist the Lead Agency in preparing adequate environmental documents. The City should also review and comment on 2019 City of Sauna Ana Local Guidelines 2-3 CBest Best & Krieger LLP 75D-30 Local Guidelines for Implementing the California Environmental Ouality Act (2019) LEAD AND RESPONSIBLE AGENCIES Draft EIRs, Negative Declarations, and Mitigated Negative Declarations. Comments shall be limited to those project activities that are within the City's area of expertise or are required to be carried out or approved by the City or are subject to the City's powers. As a Responsible Agency, the City may identify significant environmental effects of a project for which mitigation is necessary. As a Responsible Agency, the City may submit to the Lead Agency proposed mitigation measures that would address those significant environmental effects. If mitigation measures are required, the City should submit to the Lead Agency complete and detailed performance objectives for such mitigation measures that would address the significant environmental effects identified, or refer the Lead Agency to appropriate, readily available guidelines or reference documents. Any mitigation measures submitted to the Lead Agency by the City, when acting as a Responsible Agency, shall be limited to measures that mitigate impacts to resources that are within the City's authority. For private projects, the City, as a Responsible Agency, may require the project proponent to provide such information as may be required and to reimburse the City for all costs incurred by it in reporting to the Lead Agency. 2.07 RESPONSE TO NOTICE OF PREPARATION BY RESPONSIBLE AGENCIES. Within thirty (30) days of receipt of a Notice of Preparation of an EIR, the City, as a Responsible Agency, shall specify to the Lead Agency the scope and content of the environmental information related to the City's area of statutory responsibility in connection with the proposed project. At a minimum, the response shall identify the significant environmental issues and possible alternatives and mitigation that the City, as a Responsible Agency, will need to have explored in the Draft EIR. Such information shall be specified in writing, shall be as specific as possible, and shall be communicated to the Lead Agency, by certified mail or any other method of transmittal that provides it with a record that the response was received. The Lead Agency shall incorporate this information into the EIR. 2.08 USE OF FINAL EIR OR NEGATIVE DECLARATION BY RESPONSIBLE AGENCIES. The City, as a Responsible Agency, shall consider the Lead Agency's Final EIR or Negative Declaration before acting upon or approving a proposed project. As a Responsible Agency, the City must independently review and consider the adequacy of the Lead Agency's environmental documents prior to approving any portion of the proposed project. In certain instances, the City, in its role as a Responsible Agency, may require that a Subsequent EIR or a Supplemental EIR be prepared to fully address those aspects of the project over which the City has approval authority. Mitigation measures and alternatives deemed feasible and relevant to the City's role in carrying out the project shall be adopted. Findings that are relevant to the City's role as a Responsible Agency shall be made. After the City decides to approve or carry out part of a project for which an EIR or negative declaration has previously been prepared by the Lead Agency, the City, as Responsible Agency, should file a Notice of Determination with the County Clerk within five (5) days of approval, but need not state that the Lead Agency's EIR or Negative Declaration complies with CEQA. The City, as Responsible Agency, should state that it considered the EIR or Negative Declaration as prepared by a Lead Agency. 2019 City of Santa Ana Local Guidelines 24 ®Best Best & Krieger LLP 75D-31 Local Guidelines for Implementing the California Environmental Quality Act (2019) LEAD AND RESPONSIBLE AGENCIES 2.09 SHIFT IN LEAD AGENCY RESPONSIBILITIES. The City, as a Responsible Agency, shall assume the role of the Lead Agency if any one of the following three conditions is met: (a) The Lead Agency did not prepare any environmental documents for the project, and the statute of limitations has expired for a challenge to the action of the appropriate Lead Agency; (b) The Lead Agency prepared environmental documents for the project, and all of the following conditions apply: (1) A Subsequent or Supplemental EIR is required; (2) The Lead Agency has granted a final approval for the project; and (3) The statute of limitations has expired for a challenge to the action of the appropriate Lead Agency; or (c) The Lead Agency prepared inadequate environmental documents without providing public notice of a Negative Declaration or sending Notice of Preparation of an EIR to Responsible Agencies and the statute of limitations has expired for a challenge to the action of the appropriate Lead Agency. 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-32 Local Guidelines for Implementing the California Environmental Ouality Act (2019) ACTIVITIES EXEMPT FROM CEOA 3. ACTIVITIES EXEMPT FROM CEOA 3.01 ACTIONS SUBJECT TO CEQA. CEQA applies to discretionary projects proposed to be carried out or approved by public agencies such as the City. If the proposed activity does not come within the definition of "project" contained in Local Guidelines Section 11.57, it is not subject to environmental review under CEQA. "Project" does not include: (a) Proposals for legislation to be enacted by the State Legislature; (b) Continuing administrative or maintenance activities, such as purchases for supplies, personnel -related actions, and general policy and procedure making (except as provided in Local Guidelines Section 11.57); (c) The submittal of proposals to a vote of the people in response to a petition drive initiated by voters, or the enactment of a qualified voter -sponsored initiative under California Constitution Art. II, Section I I(a) and Election Code Section 9214; (d) The creation of government funding mechanisms or other government fiscal activities that do not involve any commitment to any specific project that may have a potentially significant physical impact on the environment. Government funding mechanisms may include, but are not limited to, assessment districts and community facilities districts; (e) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment; and (f) Activities that do not result in a direct or reasonably foreseeable indirect physical change in the environment. 3.02 MINISTERIAL ACTIONS. Ministerial actions are not subject to CEQA review. A ministerial action is one that is approved or denied by a decision that a public official or a public agency makes that involves only the use of fixed standards or objective measurements without personal judgment or discretion. When a project involves an approval that contains elements of both a ministerial and discretionary nature, the project will be deemed to be discretionary and subject to the requirements of CEQA. The decision whether the approval of a proposed project or activity is ministerial in nature may involve or require, to some extent, interpretation of the language of the legal mandate, and should be made on a case -by -case basis. The following is a non-exclusive list of examples of ministerial activities: (a) Issuance of business licenses; (b) Approval of final subdivision maps and final parcel maps; (c) Approval of individual utility service connections and disconnections; (d) Issuance of licenses; (e) Issuance of a permit to do street work; and (1) Issuance of building permits where the Lead Agency does not retain significant discretionary power to modify or shape the project. 2019 City of Santa Ana Local Guidelines 3-1 ©Hest Best & Krieger LLP 75D-33 Local Guidelines for Implementing the California Environmental Quality Act (2019) ACTIVITIES EXEMPT FROM CEOA 3.03 EXEMPTIONS IN GENERAL. CEQA and the State CEQA Guidelines exempt certain activities and provide that local agencies should further identify and describe certain exemptions. The requirements of CEQA and the obligation to prepare an EIR, Negative Declaration or Mitigated Negative Declaration generally do not apply to the exempt activities that are set forth in CEQA, the State CEQA Guidelines and Chapter 3 of these Local Guidelines. 3.04 PRELIMINARY EXEMPTION ASSESSMENT. If, in the judgment of Staff, a proposed activity is exempt, Staff should so frid on the form entitled "Preliminary Exemption Assessment' (Form "A"). The Preliminary Exemption Assessment shall be retained at City Offices as a public record. 3.05 NOTICE OF EXEMPTION. After approval of an exempt project, a "Notice of Exemption" (Form `B") may be filed by the City or its representatives with the county clerk of each county in which the activity will be located. If the Lead Agency exempts an agricultural housing, affordable housing, or residential infill project under State CEQA Guidelines Sections 15193, 15194 or 15195 and approves or determines to carry out that project, it must file a notice with the Office of Planning and Research ("OPR") identifying the exemption. The Preliminary Exemption Assessment shall be attached to the Notice of Exemption for filing. If filed, the Clerk must post the Notice within twenty-four (24) hours of receipt, and the Notice must remain posted for thirty (30) days. Although no California Department of Fish and Wildlife ("DFW") filing fee is applicable to exempt projects, most counties customarily charge a documentary handling fee to pay for record keeping on behalf of the DFW. Refer to the Index in the Staff Summary to determine if such a fee will be required for the project. The Notice of Exemption must also identify the person undertaking the project, including any person undertaking an activity that receives financial assistance from the City as part of the project or the person receiving a lease, permit, license, certificate, or other entitlement for use from the City as part of the project. When filing a Notice of Exemption, Staff has different responsibilities for certain types of actions. If the activity is either: (a) undertaken by a person (not a public agency) and is supported, in whole or in part, through contracts, grants, subsidies, loans, or other forms of assistance from one or more public agencies; or (b) involves the issuance to a person (not a public agency) of a lease, permit, license, certificate, or other entitlement for use by one or more public agencies; then Staff may direct that person to file the Notice of Exemption with the county clerk of each county in which the activity will be located. (See Public Resources Code section 21065 (b) and (c)). A Notice of Exemption filed by a person as described above must have a certificate of determination attached to it issued by the City stating that the action is not subject to CEQA. (See Public Resources Code Sections 21080 and 21152.) The certificate of determination may be in the form of a certified copy of an existing document or record of the City. 2019 City of Santa Ana Local Guidelines 3-2 ©Best Best & Krieger LLP 75D-34 Local Guidelines for Implementing the California Environmental Quality Act (2019) ACTIVITIES EXEMPT FROM CEQA The filing of a Notice of Exemption, when appropriate, is recommended for City actions because it starts a 35-day statute of limitations on legal challenges to the City's determination that the activity is exempt from CEQA. The City is encouraged to make postings of all filed notices available in electronic format on the Internet. These electronic postings are in addition to the procedures required by the State CEQA Guidelines and the Public Resources Code. If a Notice of Exemption is not filed, a 180-day statute of limitations will apply. Please see Local Guidelines Sections 3.13 and 3.17 for certain circumstances in which the Lead Agency is required to file a Notice of Exemption. The thirty -day posting requirement excludes the first day of posting and includes the last day of posting. On the 30th day, the Notice of Exemption must be posted for the entire day. When a request is made for a copy of the Notice prior to the date on which the City determines the project is exempt, the Notice must be mailed, first class postage prepaid, within five (5) days after the City's determination. If such a request is made following the City's determination, then the copy should be mailed in the same manner as soon as possible. 3.06 DISAPPROVED PROJECTS. Projects that the Lead Agency rejects or disapproves are exempt from CEQA. An applicant shall not be relieved of paying the costs for an EIR, Negative Declaration, or Mitigated Negative Declaration prepared for a project prior to the Lead Agency's disapproval of the project. 3.07 PROJECTS WITH No POSSIBILITY OF SIGNIFICANT EFFECT. Where it can be seen with absolute certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is exempt from CEQA. 3.08 EMERGENCY PROJECTS. The following types of emergency projects are exempt from CEQA (the term "emergency" is defined in Local Guidelines Section 11.20): (a) Work in a disaster -stricken area in which a state of emergency has been proclaimed by the Governor pursuant to Section 8550 of the Government Code. This includes projects that will remove, destroy, or significantly alter a historical resource when that resource represents an imminent threat to the public of bodily harm or of damage to adjacent property or when the project has received a determination by the State Office of Historic Preservation pursuant to Section 5028(b) of the Public Resources Code. (b) Emergency repairs to publicly or privately owned service facilities necessary to maintain service essential to the public health, safety or welfare. Emergency repairs include those that require a reasonable amount of planning to address an anticipated emergency. (c) Projects necessary to prevent or mitigate an emergency. This does not include long-term projects undertaken for the purpose of preventing or mitigating a situation that has a low probability of occurrence in the short-term, but this exclusion does not apply (i) if the anticipated period of time to conduct an environmental review of such a long-term project would create a risk to public health, safety or welfare, or (ii) if activities (such as 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-35 Local Guidelines for Implementing the California Environmental Quality Act (2019) ACTIVITIES EXEMPT FROM CEOA fire or catastrophic risk mitigation or modifications to improve facility integrity) are proposed for existing facilities in response to an emergency at a similar existing facility. (d) Projects undertaken, carried out, or approved by a public agency to maintain, repair, or restore an existing highway damaged by fire, flood, storm, earthquake, land subsidence, gradual earth movement, or landslide, provided that the project is within the existing right of way of that highway and is initiated within one year of the damage occurring. Highway shall have the same meaning as defined in Section 360 of the Vehicle Code. This exemption does not apply to highways designated as official state scenic highways, nor to any project undertaken, carried out, or approved by a public agency to expand or widen a highway damaged by fire, flood, storm, earthquake, land subsidence, gradual earth movement, or landslide. (e) Seismic work on highways and bridges pursuant to Streets and Highways Code section 180.2. 3.09 FEASIBILITY AND PLANNING STUDIES. A project that involves only feasibility or planning studies for possible future actions which the City has not yet approved, adopted or funded is exempt from CEQA. 3.10 RATES, TOLLS, FARES AND CHARGES. The establishment, modification, structuring, restructuring or approval of rates, tolls, fares or other charges by the City that the City finds are for one or more of the purposes listed below are exempt from CEQA. (a) Meeting operating expenses, including employee wage rates and fringe benefits; (b) Purchasing or leasing supplies, equipment or materials; (c) Meeting financial reserve needs and requirements; or (d) Obtaining funds for capital projects necessary to maintain service within existing service areas. When the City determines that one of the aforementioned activities pertaining to rates, tolls, fares or charges is exempt from the requirements of CEQA, it shall incorporate written findings setting forth the specific basis for the claim of exemption in the record of any proceeding in which such an exemption is claimed. 3.11 PIPELINES WITHIN A PUBLIC RIGHT-OF-WAY AND LESS THAN ONE MILE IN LENGTH. Projects that are for the installation of a new pipeline or the maintenance, repair, restoration, reconditioning, relocation, replacement, removal, or demolition of an existing pipeline and that are: (a) in a public street or highway or any other public right-of-way; and (b) less than one mile in length shall be exempt from CEQA requirements. See Public Resources Code section 21080.21. 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-36 Local Guidelines for Implementing the California Environmental Ouality Act (2019) ACTIVITIES EXEMPT FROM CEOA "Pipeline" includes subsurface facilities but does not include any surface facility related to the operation of the underground facility. 3.12 PIPELINES OF LESS THAN EIGHT MILES IN LENGTH. Projects that are for the inspection, maintenance, repair, restoration, reconditioning, relocation, replacement, or removal of an existing pipeline, or any valve, flange, meter, or other piece of equipment that is directly attached to the pipeline shall be exempt from CEQA requirements if all of the following conditions are met: (a) The project is less than eight miles in length. (b) Notwithstanding the project length, actual construction and excavation activities undertaken to achieve the maintenance, repair, restoration, reconditioning, relocation, replacement, or removal of an existing pipeline are not undertaken over a length of more than one-half mile at any one time. (c) The project consists of a section of pipeline that is not less than eight miles from any section of pipeline that has been subject to an exemption pursuant to CEQA in the past 12 months. (d) The project is not solely for the purpose of excavating soil that is contaminated by hazardous materials, and, to the extent not otherwise expressly required by law, the party undertaking the project immediately informs the lead agency of the discovery of contaminated soil. (e) To the extent not otherwise expressly required by law, the person undertaking the project has, in advance of undertaking the project, prepared a plan that will result in notification of the appropriate agencies so that they may take action, if determined to be necessary, to provide for the emergency evacuation of members of the public who may be located in close proximity to the project. (f) Project activities are undertaken within an existing right-of-way and the right-of-way is restored to its condition prior to the project. (g) The project applicant agrees to comply with all conditions otherwise authorized by law, imposed by the city or county planning department as part of any local agency permit process, that are required to mitigate potential impacts of the proposed project, and to otherwise comply with the Keene-Nejedly California Wetlands Preservation Act (Chapter 7 (commencing with Section 5810) of Division 5), the California Endangered Species Act (Chapter 1.5 (commencing with Section 2050) of Division 3 of the Fish and Game Code), and other applicable state laws, and with all applicable federal laws. If a project meets all of the requirements for this exemption, the person undertaking the project shall do all of the following: (a) Notify, in writing, any affected public agency, including, but not limited to, any public agency having permit, land use, environmental, public health protection, or emergency response authority of this exemption. (b) Provide notice to the public in the affected area in a manner consistent with paragraph (3) of Public Resources Code section 21092(b). (c) In the case of private rights -of -way over private property, receive from the underlying property owner permission for access to the property. 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-37 Local Guidelines for Implementing the California Environmental Quality Act (2019) ACTIVITIES EXEMPT FROM CEOA (d) Comply with all conditions otherwise authorized by law, imposed by the city or county planning department as part of any local agency permit process, that are required to mitigate potential impacts of the proposed project, and otherwise comply with the Keene- Nejedly California Wetlands Preservation Act (Chapter 7 (commencing with Section 5810) of Division 5), the California Endangered Species Act (Chapter 1.5 (commencing with Section 2050) of Division 3 of the Fish and Game Code), and other applicable state laws, and with all applicable federal laws. This exemption does not apply to a project in which the diameter of the pipeline is increased or to a project undertaken within the boundaries of an oil refinery. For purposes of this exemption, the following definitions apply: (a) "Pipeline" includes every intrastate pipeline used for the transportation of hazardous liquid substances or highly volatile liquid substances, including a common carrier pipeline, and all piping containing those substances located within a refined products bulk loading facility which is owned by a common carrier and is served by a pipeline of that common carrier, and the common carrier owns and serves by pipeline at least five such facilities in the state. "Pipeline" does not include the following: (1) An interstate pipeline subject to Part 195 of Title 49 of the Code of Federal Regulations. (2) A pipeline for the transportation of a hazardous liquid substance in a gaseous state. (3) A pipeline for the transportation of crude oil that operates by gravity or at a stress level of 20 percent or less of the specified minimum yield strength of the pipe. (4) Transportation of petroleum in onshore gathering lines located in rural areas. (5) A pipeline for the transportation of a hazardous liquid substance offshore located upstream from the outlet flange of each facility on the Outer Continental Shelf where hydrocarbons are produced or where produced hydrocarbons are first separated, dehydrated, or otherwise processed, whichever facility is farther downstream. (6) Transportation of a hazardous liquid by a flow line. (7) A pipeline for the transportation of a hazardous liquid substance through an onshore production, refuting, or manufacturing facility, including a storage or in plant piping system associated with that facility. (8) Transportation of a hazardous liquid substance by vessel, aircraft, tank truck, tank car, or other vehicle or terminal facilities used exclusively to transfer hazardous liquids between those modes of transportation. 3.13 CERTAIN RESIDENTIAL HOUSING PROJECTS. CEQA does not apply to the construction, conversion, or use of residential housing if the project meets all of the general requirements described in Section A below and satisfies the specific requirements for any one of the following three categories: (1) agricultural housing 2019 City of Santa Ana Local Guidelines CBest Best & Krieger LLP 75D-38 Local Guidelines for Implementing the California Environmental Ouality Act (2019) ACTIVITIES EXEMPT FROM CEOA (Section B below), (2) affordable housing projects in urbanized areas (Section C below), or (3) affordable housing projects near major transit stops (Section D below). A. General Requirements. The construction, conversion, or use of residential housing units affordable to low-income households (as defined in Local Guidelines Section 11.36) located on an infill site in an urbanized area is exempt from CEQA if all of the following general requirements are satisfied: (1) The project is consistent with: (a) Any applicable general plan, specific plan, or local coastal program, including any mitigation measures required by such plan or program, as that plan or program existed on the date that the application was deemed complete; and (b) Any applicable zoning ordinance, as that zoning ordinance existed on the date that the application was deemed complete. However, the project may be inconsistent with zoning if the zoning is inconsistent with the general plan and the project site has not been rezoned to conform to the general plan; (2) Community level environmental review has been adopted or certified; (3) The project and other projects approved prior to the approval of the project can be adequately served by existing utilities, and the project applicant has paid, or has committed to pay, all applicable in -lieu or development fees; (4) The project site meets all of the following four criteria relating to biological resources: (a) The project site does not contain wetlands; (b) The project site does not have any value as a wildlife habitat; (c) The project does not harm any species protected by the federal Endangered Species Act of 1973, the Native Plant Protection Act, or the California Endangered Species Act; and (d) The project does not cause the destruction or removal of any species protected by a local ordinance in effect at the time the application for the project was deemed complete; (5) The site is not included on any list of facilities and sites compiled pursuant to Government Code Section 65962.5; (6) The project site is subject to a preliminary endangerment assessment prepared by a registered environmental assessor to determine the existence of any release of a hazardous substance on the site and to determine the potential for exposure of future occupants to significant health hazards from any nearby property or activity. In addition, the 2019 City of Santa Ana Local Guidelines OBest Best & Krieger LLP 75D-39 Local Guidelines for hnplementing the California Environmental Ouality Act (2019) ACTNITIES EXEMPT FROM CEOA following steps must have been taken in response to the results of this assessment: (a) If a release of a hazardous substance is found to exist on the site, the release shall be removed or any significant effects of the release shall be mitigated to a level of insignificance in compliance with state and federal requirements; or (b) If a potential for exposure to significant hazards from surrounding properties or activities is found to exist, the effects of the potential exposure shall be mitigated to a level of insignificance in compliance with state and federal requirements; (7) The project does not have a significant effect on historical resources pursuant to Section 21084.1 of the Public Resources Code (see Local Guidelines Section 11.28); (8) The project site is not subject to wildland fire hazard, as determined by the Department of Forestry and Fire Protection; unless the applicable general plan or zoning ordinance contains provisions to mitigate the risk of a wildland fire hazard; (9) The project site does not have an unusually high risk of fire or explosion from materials stored or used on nearby properties; (10) The project site does not present a risk of a public health exposure at a level that would exceed the standards established by any state or federal agency; (11) Either the project site is not within a delineated earthquake fault zone, or a seismic hazard zone, as determined pursuant to Section 2622 and 2696 of the Public Resources Code respectively, or the applicable general plan or zoning ordinance contains provisions to mitigate the risk of an earthquake or seismic hazard; (12) Either the project site does not present a landslide hazard, flood plain, flood way, or restriction zone, or the applicable general plan or zoning ordinance contains provisions to mitigate the risk of a landslide or flood; (13) The project site is not located on developed open space; (14) The project site is not located within the boundaries of a state conservancy; (15) The project site has not been divided into smaller projects to qualify for one or more of the exemptions for affordable housing, agricultural housing, or residential infill housing projects found in the subsequent sections; and 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-40 Local Guidelines for Implementing the California Environmental Ouality Act (2019) ACTIVITIES EXEMPT FROM CEOA (16) The project meets the requirements set forth in either Public Resources Code Sections 21159.22, 21159.23 or 21159.24. B. Specific Requirements for Agricultural Housing. (Public Resources Code Sections 21084 and 21159.22, and State CEQA Guidelines Section 15192.) CEQA does not apply to the construction, conversion, or use of residential housing for agricultural employees that meets all of the general requirements described above in Section A and meets the following additional criteria: (1) The project either: (a) Is affordable to lower income households, lacks public financial assistance, and the developer has provided sufficient legal commitments to ensure the continued availability and use of the housing units for lower income households for a period of at least fifteen (15) years; or (b) If public financial assistance exists for the project, then the project must be housing for very low-, low-, or moderate - income households and the developer of the project has provided sufficient legal commitments to the appropriate local agency to ensure the continued availability and use of the housing units for low- and moderate -income households for a period of at least fifteen (15) years; (2) The project site is adjacent on at least two sides to land that has been developed and the project consists of not more than forty-five (45) units or provides dormitories, barracks, or other group -living facilities for a total of forty-five (45) or fewer agricultural employees, and either: (a) The project site is within incorporated city limits or within a census -defined place with a minimum population density of at least five thousand (5,000) persons per square mile; or (b) The project site is within incorporated city limits or within a census -defined place and the minimum population density of the census -defined place is at least one thousand (1,000) persons per square mile, unless the Lead Agency determines that there is a reasonable possibility that the project, if completed, would have a significant effect on the environment due to unusual circumstances or that the cumulative effects of successive projects of the same type in the same area would, over time, be significant; (3) If the project is located on a site zoned for general agricultural use, it must consist of twenty (20) or fewer units, or, if the housing consists of dormitories, barracks, or other group -living facilities, the project must not provide housing for more than twenty (20) agricultural employees; and 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-41 Local Guidelines for Implementing the California Environmental Ouality Act (2019) ACTIVITIES EXEMPT FROM CEOA (4) The project is not more than two (2) acres in area if the project site is located in an area with a population density of at least one thousand (1,000) persons per square mile, and is not more than five (5) acres in area for all other project sites. C. Specific Requirements for Affordable Housing Projects in Urbanized Areas. (Reference: Public Resources Code Sections 21083 and 21159.23, and State CEQA Guidelines Section 15194.) CEQA does not apply to any development project that consists of the construction, conversion, or use of residential housing consisting of one hundred (100) or fewer units that are affordable to low-income households if all of the general requirements described in Section A above are satisfied and the following additional criteria are also met: (1) The developer of the project provides sufficient legal commitments to the local agency to ensure the continued availability and use of the housing units for lower income households for a period of at least thirty (30) years, at monthly housing costs deemed to be "affordable rent' for lower income, very low income, and extremely low income households, as determined pursuant to Section 50053 of the Health and Safety Code; (2) The project site meets one of the following conditions (a) Has been previously developed for qualified urban uses; (b) Is immediately adjacent to parcels that are developed with qualified urban uses; or (c) At least 75% of the perimeter of the site adjoins parcels that are developed with qualified urban uses and the remaining 25% of the perimeter of the site adjoins parcels that have previously been developed for qualified urban uses, the site has not been developed for urban uses and no parcel within the site has been created within ten (10) years prior to the proposed development of the site; (3) The project site is not more than five (5) acres in area; and (4) The project site meets one of the following requirements regarding population density: (a) The project site is within an urbanized area or within a census - defined place with a population density of at least five thousand (5,000) persons per square mile; (b) If the project consists of fifty (50) or fewer units, the project site is within an incorporated city with a population density of at least twenty-five hundred (2,500) persons per square mile and a total population of at least twenty-five thousand (25,000) persons; or 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-42 Local Guidelines for Implementing the California Environmental Gaudily Act (2019) ACTIVITIES EXEMPT FROM CEOA (c) The project site is within either an incorporated city or a census - defined place with a population density of one thousand (1,000) persons per square mile, unless there is a reasonable possibility that the project would have a significant effect on the environment due to unusual circumstances or due to the related or cumulative impacts of reasonably foreseeable projects in the vicinity of the project. D. Specific Requirements for Affordable Housing Projects Near Major Transit Stops. (Reference: Public Resources Code Sections 21083 and 21159.24, and State CEQA Guidelines Section 15195.) CEQA does not apply to a residential project on an infrll site within an urbanized area if all of the general requirements described above in Section A are satisfied and the following additional criteria are also met: (1) Within five (5) years prior to the date that the application for the project is deemed complete, community -level environmental review was certified or adopted. This exemption does not apply, however, if new information about the project or substantial changes regarding the circumstances surrounding the project become available after the community -level environmental review was certified or adopted; (2) The site is not more than four (4) acres in total area; (3) The project does not contain more than one hundred (100) residential units; (4) The project meets either of the following criteria: (a) At least 10% of the housing is sold to families of moderate income or rented to families of low income, or at least 5% of the housing is rented to families of very low income, and the project developer has provided sufficient legal commitments to ensure the continued availability and use of the housing units for very low-, low-, and moderate -income households at monthly housing costs; or (b) The project developer has paid or will pay in -lieu fees sufficient to pay for the development of the same number of units that would otherwise be sold or rented to families of moderate or very low income pursuant to subparagraph (a); (5) The project is within one-half mile of a major transit stop; (6) The project does not include any single -level building that exceeds one hundred thousand (100,000) square feet; (7) The project promotes higher density infill housing: 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-43 Local Guidelines for lmplementing the California Environmental Ouality Act (2019) ACTIVITIES EXEMPT FROM CEOA (a) A project with a density of at least 20 units per acre shall be conclusively presumed to promote higher density infill housing; or (b) A project with a density of at least 10 units per acre and a density greater than the average density of the residential properties within 1,500 feet shall be presumed to promote higher density housing unless the preponderance of the evidence demonstrates otherwise; (8) Exception: (a) Except as provided in subdivision (b), this division does not apply to a project if all of the following criteria are met: 2019 City of Santa Ana Local Guidelines 1. The project is a residential project on an infill site. 2. The project is located within an urbanized area. 3. The project satisfies the criteria of Section 21159.21. 4. Within five years of the date that the application for the project is deemed complete pursuant to Section 65943 of the Government Code, community -level environmental review was certified or adopted. 5. The site of the project is not more than four acres in total area. 6. The project does not contain more than 100 residential units. 7. Either of the following criteria are met: a. At least 10 percent of the housing is sold to families of moderate income, or not less than 10 percent of the housing is rented to families of low income, or not less than 5 percent of the housing is rented to families of very low income. b. The project developer provides sufficient legal commitments to the appropriate local agency to ensure the continued availability and use of the housing units for very low-, low-, and moderate -income households at monthly housing costs determined pursuant to paragraph (3) of the subdivision (h) of Section 65589.5 of the Government Code. OBest Best & Krieger LLP 75D-44 Local Guidelines for Implementing the California Enviromnental Ouality Act (2019) ACTNITIES EXEMPT FROM CEOA c. The project developer has paid or will pay in -lieu fees pursuant to a local ordinance in an amount sufficient to result in the development of an equivalent number of units that would otherwise be required pursuant to subparagraph (7)(a). 8. The project is within one-half mile of a major transit stop. 9. The project does not include any single level building that exceeds 100,000 square feet. 10. The project promotes higher density infill housing. A project with a density of at least 20 units per acre shall be conclusively presumed to promote higher density infill housing. A project with a density of at least 10 units per acre and a density greater than the average density of the residential properties within 1,500 feet shall be presumed to promote higher density housing unless the preponderance of the evidence demonstrates otherwise. (b) The Exemption for Affordable Housing Projects near Major Transit Stops does not apply if any one of the following criteria is met: 1. There is a reasonable possibility that the project will have a project -specific, significant effect on the environment due to unusual circumstances; 2. Substantial changes have occurred since community -level environmental review was adopted or certified with respect to the circumstances under which the project is being undertaken, and those changes are related to the project; or 3. New information regarding the circumstances under which the project is being undertaken has become available, and that new information is related to the project and was not known and could not have been known at the time of the community -level environmental review; (c) If a project satisfies any one of the three criteria described above in Section 3.13D(8)(a), the environmental effects of the project must be analyzed in an Environmental Impact Report or a Negative Declaration. The environmental analysis shall be limited to the project -specific effects and any effects identified pursuant to Section 3.13D(8)(a). E. Whenever the Lead Agency determines that a project is exempt from environmental review based on Public Resources Code Sections 21159.22 [Section 3.1313 of these Local Guidelines], 21159.23 [Section 3.13C of these Local Guidelines], or 21159.24 [Section 3.13D of these Local Guidelines], Staff and/or the proponent of the project shall file a Notice of Exemption with the 2019 City of Santa Ana Local Guidelines OBest Best & Krieger LLP 75D-45 Local Guidelines for Implementing the California Enviroamental Ouality Act (2019) ACTIVITIES EXEMPT FROM CEOA Office of Planning and Research within five (5) working days after the approval of the project. 3.14 MINOR ALTERATIONS TO FLUORIDATE WATER UTILITIES. Minor alterations to water utilities made for the purpose of complying with the fluoridation requirements of Health and Safety Code Sections 116410 and 116415 or regulations adopted thereunder are exempt from CEQA. 3.15 BALLOT MEASURES. The definition of project in the State CEQA Guidelines specifically excludes the submittal of proposals to a vote of the people of the state or of a particular community. This exemption does not apply to the public agency that sponsors the initiative. When a governing body makes a decision to put a measure on the ballot, that decision may be discretionary and therefore subject to CEQA. In contrast, the enactment of a qualified voter -sponsored initiative under California Constitution Art. II, Section 11(a) and Election Code Section 9214 is not a project and therefore is not subject to CEQA review. (See Local Guidelines Section 3.01.) 3.16 TRANSIT PRIORITY PROJECT. Exemption: Transit Priority Projects (see Local Guidelines Section 11.75) that are consistent with the general use designation, density, building intensity, and applicable policies specified for the project area in either a Sustainable Community Strategy or an alternative planning strategy may be exempt from CEQA. To qualify for the exemption, the decision - making body must hold a hearing and make findings that the project meets all of Public Resources Code Section 21155.1's environmental, housing, and public safety conditions and requirements. Streamlined Review: A Transit Priority Project that has incorporated all feasible mitigation measures, performance standards or criteria set forth in a prior environmental impact report, may be eligible for streamlined environmental review. For a complete description of the requirements for this streamlined review see Public Resources Code Section 21155.2. Similarly, the environmental review for a residential or mixed use residential project may limit, or entirely omit, its discussion of growth -inducing impacts or impacts from traffic on global warming under certain limited circumstances. Note, however, that impacts from other sources of greenhouse gas emissions would still need to be analyzed. For complete requirements see Public Resources Code Section 21159.28. Note that neither the exemption nor the streamlined review will apply until: (1) the applicable Metropolitan Planning Organization prepares and adopts a Sustainable Communities Strategy or alternative planning strategy for the region; and (2) the California Air Resources Board has accepted the Metropolitan Planning Organization's determination that the Sustainable Communities Strategy or the alternative planning strategy would, if implemented, achieve the greenhouse gas emission reduction targets adopted for the region. 2019 City of Santa Ana Local Guidelines 3-14 CBest Best & Krieger LLP 75D-46 Local Guidelines for Implementing the California Environmental Quality Act (2019) ACTIVITIES EXEMPT FROM CEOA 3.17 ROADWAY IMPROVEMENTS. CEQA does not apply to a project or an activity to repair, maintain, or make minor alterations to an existing roadway, as defined in Local Guidelines Section 11.64, if all of the following conditions are met: A. General Requirements: (1) The project is carried out by a city or county with a population of less than 100,000 persons to improve public safety. (2) The project does not cross a waterway as defined in Local Guidelines Section 11.84. (3) The project involves negligible or no expansion of an existing use beyond that existing at the time of the lead agency's determination. (4) The roadway is not a state roadway. (5) The site of the project does not contain wetlands or riparian areas, and does not have "significant value as a wildlife habitat" (as defined in Local Guidelines Section 11.66) and the project does not harm any species protected by the federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et seq.), the Native Plant Protection Act (Chapter 10 (commencing with Section 1900) of Division 2 of the Fish and Game Code), or the California Endangered Species Act (Chapter 1.5 (commencing with Section 2050) of Division 3 of the Fish and Game Code), and the project does not cause the destruction or removal of any species protected by a local ordinance. (6) The project does not impact cultural resources. (7) The roadway does not affect scenic resources, as provided pursuant to subdivision (c) of Section 21084 of the Public Resources Code. B. Prior to determining that a project is exempt pursuant to this section, the lead agency shall do both of the following: (1) Include measures in the project to mitigate potential vehicular traffic and safety impacts and bicycle and pedestrian safety impacts. (2) Hold a noticed public hearing on the project to hear and respond to public comments. The hearing on the project may be conducted with another noticed lead agency public hearing. Publication of the notice shall be no fewer times than required by Section 6061 of the Government Code, by the public agency in a newspaper of general circulation in the area. C. Whenever the local agency determines that a project is not subject to this exemption, and it approves or determines to or carry out that project, the local agency shall file a notice with the Office of Planning and Research, and with the county clerk in the manner specified in subdivisions (b) and (c) of Public Resources Code Section 21152. 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-47 Local Guidelines for Implementing the California Environmental Ouality Act (2019) ACTIVITIES EXEMPT FROM CEOA 3.18 CERTAIN INFILL PROJECTS (a) (1) If an environmental impact report was certified for a planning level decision of the city or county, the application of CEQA to the approval of an infill project shall be limited to the effects on the environment that (A) are specific to the project or to the project site and were not addressed as significant effects in the prior environmental impact report or (B) substantial new information shows the effects will be more significant than described in the prior environmental impact report. The attached Form "S" shall be used for this determination. A lead agency's determination pursuant to this section shall be supported by substantial evidence. (2) An effect of a project upon the environment shall not be considered a specific effect of the project or a significant effect that was not considered significant in a prior environmental impact report, or an effect that is more significant than was described in the prior environmental impact report if uniformly applicable development policies or standards adopted by the city, county, or the lead agency, would apply to the project and the lead agency makes a finding, based upon substantial evidence, that the development policies or standards will substantially mitigate that effect. (b) If an infill project would result in significant effects that are specific to the project or the project site, or if the significant effects of the infill project were not addressed in the prior environmental impact report, or are more significant than the effects addressed in the prior environmental impact report, and if a mitigated negative declaration or a sustainable communities environmental assessment could not be otherwise adopted, an environmental impact report prepared for the project analyzing those effects shall be limited as follows: (1) Alternative locations, densities, and building intensities to the project need not be considered. (2) Growth inducing impacts of the project need not be considered. (c) This section applies to an infill project that satisfies both of the following: (1) The project satisfies any of the following: A) Is consistent with the general use designation, density, building intensity, and applicable policies specified for the project area in either a sustainable communities strategy or an alternative planning strategy for which the State Air Resources Board, pursuant to subparagraph (I) of paragraph (2) of subdivision (b) of Section 65080 of the Government Code, has accepted a metropolitan planning organization's determination that the sustainable communities strategy or the alternative planning strategy would, if implemented, achieve the greenhouse gas emission reduction targets. (B) Consists of a small walkable community project located in an area designated by a city for that purpose. (C) Is located within the boundaries of a metropolitan planning organization that has not yet adopted a sustainable communities strategy or alternative planning strategy, 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-48 Local Guidelines for Implementing the California Enviraranental Ouality Act (2019) ACTIVITIES EXEMPT FROM CEOA and the project has a residential density of at least 20 units per acre or a floor area ratio of at least 0.75. (2) Satisfies all applicable statewide performance standards contained in the guidelines adopted pursuant to Public Resources Code Section 21094.5.5 (Form "R"). (d) This section applies after the Secretary of the Natural Resources Agency adopts and certifies the guidelines establishing statewide standards pursuant to Public Resources Code Section 21094.5.5. (e) For the purposes of this section, the following terms mean the following: (1) "Infrll project" means a project that meets the following conditions: (A) Consists of any one, or combination, of the following uses: (i) Residential. (ii) Retail or commercial, where no more than one-half of the project area is used for parking. (iii) A transit station. (iv) A school. (v) A public office building. (B) Is located within an urban area on a site that has been previously developed, or on a vacant site where at least 75 percent of the perimeter of the site adjoins, or is separated only by an improved public right-of-way from, parcels that are developed with qualified urban uses. (2) "Planning level decision" means the enactment or amendment of a general plan, community plan, specific plan, or zoning code. (3) "Prior environmental impact report" means the environmental impact report certified for a planning level decision, as supplemented by any subsequent or supplemental environmental impact reports, negative declarations, or addenda to those documents. (4) "Small walkable community project" means a project that is in an incorporated city, which is not within the boundary of a metropolitan planning organization and that satisfies the following requirements: (A) Has a project area of approximately one -quarter mile diameter of contiguous land completely within the existing incorporated boundaries of the city. (B) Has a project area that includes a residential area adjacent to a retail downtown area. 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-49 Local Guidelines for Implementing the California Environmental Quality Act (2019) ACTIVITIES EXEMPT FROM CEOA (C) The project has a density of at least eight dwelling units per acre or a floor area ratio for retail or commercial use of not less than 0.50. (5) "Urban area" includes either an incorporated city or an unincorporated area that is completely surrounded by one or more incorporated cities that meets both of the following criteria: (A) The population of the unincorporated area and the population of the surrounding incorporated cities equal a population of 100,000 or more. (B) The population density of the unincorporated area is equal to, or greater than, the population density of the surrounding cities. 3.19 EXEMPTION FOR INFILL PROJECTS IN TRANSIT PRIORITY AREAS A residential or mixed -use project, or a project with a floor area ratio of at least 0.75 on commercially -zoned property, including any required subdivision or zoning approvals, is exempt from CEQA if the project satisfies the following criteria: ■ The project is located within a transit priority area as defined in Section 11.74 below; • The project is consistent with an applicable specific plan for which an environmental impact report was certified; and The project is consistent with the general use designation, density, building intensity, and applicable policies specified for the project area in either a sustainable communities strategy or an alternative planning strategy for which the State Air Resources Board has accepted the determination that the sustainable communities strategy or the alternative planning strategy would achieve the applicable greenhouse gas emissions reduction targets. Further environmental review shall be required for a project meeting the above criteria only if one of the events specified in Section 8.04 below occurs. 3.20 EXEMPTION FOR RESIDENTIAL PROJECTS UNDERTAKEN PURSUANT TO A SPECIFIC PLAN Where a public agency has prepared an EIR for a specific plan after January 1, 1980, a residential project undertaken pursuant to and in conformity with that specific plan is generally exempt from CEQA. Residential projects covered by this section include, but are not limited to, land subdivisions, zoning changes, and residential planned unit developments. Further environmental review shall be required for a project meeting the above criteria only if, after the adoption of the specific plan, one of the events specified in Section 8.04 below occurs. In that circumstance, this exemption shall not apply until the city or county which adopted the specific plan completes a subsequent EIR or a supplement to an EIR on the specific plan. The exemption provided by this section shall again be available to residential projects after the Lead 2019 City of Santa Ana Local Guidelines 3-18 ®Best Best & Krieger LLP 75D-50 Local Guidelines for Implementing the California Environmental Ouality Act (2019) ACTNrrlES EXEMPT FROM CEOA Agency has filed a Notice of Determination on the specific plan as reconsidered by the subsequent EIR or supplement to the EIR. 3.21 OTHER SPECIFIC EXEMPTIONS. CEQA and the State CEQA Guidelines exempt many other specific activities, including early activities related to thermal power plants, ongoing projects, transportation improvement programs, family day care homes, congestion management programs, railroad grade separation projects, restriping of streets or highways to relieve traffic congestion, restriping of streets in urbanized areas for bicycle lanes, adoption of bicycle transportation plans for urban areas, hazardous or volatile liquid pipelines, and the installation of solar energy systems, including, but not limited to solar panels. Specific statutory exemptions are listed in the Public Resources Code, including Sections 21080 through 21080.35, and in the State CEQA Guidelines, including Sections 15260 through 15285. In addition, other titles of the California Codes provide statutory exemptions from CEQA, including, for example, Government Code Section 12012.70. Prior to determining that a bicycle transportation plan for an urban area is exempt, the lead agency must hold noticed public hearings in areas affected by the bicycle transportation plan to hear and respond to public comments. Publication of the notice must comply with Government Code Section 6061 and be in a newspaper of general circulation in the area affected by the proposed project. The lead agency must also prepare an assessment of any traffic and safety impacts of the project and include measures in the bicycle transportation plan to mitigate potential vehicular traffic impacts and bicycle and pedestrian safety impacts. See Public Resources Code Sections 21080.20 and 21080.20.5. This exemption shall remain in place until January 1, 2021. 3.22 CATEGORICAL EXEMPTIONS. The State CEQA Guidelines establish certain classes of categorical exemptions. These apply to classes of projects which have been determined not to have a significant effect on the environment and which, therefore, are eg nerally exempt from CEQA. For any project that falls within one of these classes of categorical exemptions, the preparation of environmental documents under CEQA is not required. The classes of projects are briefly summarized below. (Reference to the State CEQA Guidelines for the full description of each exemption is recommended.) The exemptions for Classes 3, 4, 5, 6 and 11 below are qualified in that such projects must be considered in light of the location of the project. A project that is ordinarily insignificant in its impact on the environment may, in a particularly sensitive environment, be significant. Therefore, these classes are considered to apply in all instances except when the project may impact an environmental resource of hazardous or critical concern that has been designated, precisely mapped, and officially adopted pursuant to law by federal, state, or local agencies. All classes of categorical exemptions are qualified. None of the categorical exemptions are applicable if any of the following circumstances exist: 2019 City of Santa Ana Local Guidelines 3-19 ©Best Beat & Krieger LLP 75D-51 Local Guidelines for Lnplementing the California Environmental Quality Act (2019) ACTIVITIES EXEMPT FROM CEOA (1) The cumulative impact of successive projects of the same type in the same place over time is significant; (2) There is a reasonable possibility that the activity will have a significant effect on the environment due to unusual circumstances; (3) The project may result in damage to a scenic resource or may result in a substantial adverse change to a historical resource; or (4) The project is located on a site which is included on any hazardous waste site or list compiled pursuant to Government Code Section 65962.5. However, a project's greenhouse gas emissions do not, in and of themselves, cause an exemption to be inapplicable if the project otherwise complies with all applicable regulations or requirements adopted to implement statewide, regional, or local plans consistent with State CEQA Guidelines Section 15183.5. With the foregoing limitations in mind, the following classes of activity are generally exempt from CEQA: Class 1: Existing Facilities. Activities involving the operation, repair, maintenance, permitting, leasing, licensing, minor alteration of —or legislative activities to regulate— existing public or private structures, facilities, mechanical equipment or other property, or topographical features, provided the activity involves negligible or no expansion of existing or former use. The types of "existing facilities" itemized in State CEQA Guidelines Section 15301 are not intended to be all-inclusive of the types of projects which might fall within Class 1. The key consideration is whether the project involves negligible or no expansion of use. (State CEQA Guidelines Section 15301.) Class 2: Replacement or Reconstruction. Replacement or reconstruction of existing facilities, structures, or other property where the new facility or structure will be located on the same site as the replaced or reconstructed facility or structure and will have substantially the same purpose and capacity as the replaced or reconstructed facility or structure. (State CEQA Guidelines Section 15302.) Class 3: New Construction or Conversion of Small Structures. Construction of limited numbers of small new facilities or structures; installation of small new equipment or facilities in small structures; and the conversion of existing small structures from one use to another, when only minor modifications are made in the exterior of the structure. This exemption includes structures built for both residential and commercial uses. (The maximum number of structures allowable under this exemption is set forth in State CEQA Guidelines Section 15303.) Class 4: Minor Alterations to Land. Minor alterations in the condition of land, water, and/or vegetation which do not involve removal of healthy, mature, scenic trees, except for forestry or agricultural purposes. (State CEQA Guidelines Section 15304.) 2019 City of Santa Ana Local Guidelines 3-20 ®Best But & Krieger LLP 75D-52 Local Guidelines for Implementing the California Environmental Guality Act (2019) ACTIVITIES EXEMPT FROM CEQA Class 5: Minor Alterations in Land Use Limitations. Minor alterations in land use limitations in areas with an average slope of less than 20% which do not result in any changes in land use or density. (State CEQA Guidelines Section 15305.) Class 6: Information Collection. Basic data collection, research, experimental management, and resource evaluation activities which do not result in a serious or major disturbance to an environmental resource. (State CEQA Guidelines Section 15306.) Class 7: Actions by Regulatory Agencies for Protection of Natural Resources. Actions taken by regulatory agencies as authorized by state law or local ordinance to assure the maintenance, restoration, or enhancement of a natural resource where the regulatory process involves procedures for protection of the environment. (State CEQA Guidelines Section 15307.) Class 8: Actions By Regulatory Agencies for Protection of the Environment. Actions taken by regulatory agencies, as authorized by state or local ordinance, to assure the maintenance, restoration, enhancement or protection of the environment where the regulatory process involves procedures for protection of the environment. (State CEQA Guidelines Section 15308.) Class 9: Inspection. Inspection activities, including, but not limited to, inquiries into the performance of an operation and examinations of the quality, health or safety of a project. (State CEQA Guidelines Section 15309.) Class 10: Loans. Loans made by the Department of Veterans Affairs under the Veterans Farm and Home Purchase Act of 1943, mortgages for the purchase of existing structures where the loan will not be used for new construction and the purchase of such mortgages by financial institutions. (State CEQA Guidelines Section 15310.) Class 11: Accessory Structures. Construction or replacement of minor structures accessory or appurtenant to existing commercial, industrial, or institutional facilities, including, but not limited to, on -premise signs; small parking lots; and placement of seasonal or temporary use items, such as lifeguard towers, mobile food units, portable restrooms or similar items in generally the same locations from time to time in publicly owned parks, stadiums or other facilities designed for public use. (State CEQA Guidelines Section 15311.) Class 12: Surplus Government Property Sales. Sales of surplus government property, except for certain parcels of land located in an area of statewide, regional or area -wide concern identified in State CEQA Guidelines Section 15206(b)(4). However, even if the surplus property to be sold is located in any of those areas, its sale is exempt if: (a) The property does not have significant values for wildlife or other environmental purposes; and (b) Any one of the following three conditions is met: 1. The property is of such size, shape, or inaccessibility that it is incapable of independent development or use; 2. The property to be sold would qualify for an exemption under any other class of categorical exemption in the State CEQA Guidelines; or 2019 City of Santa Ana Local Guidelines ©Best Best & Krieger LLP 75D-53 Local Guidelines for Implementing the California Environmental Ouality Act (2019) ACTIVITIES EXEMPT FROM CEOA The use of the property and adjacent property has not changed since the time of purchase by the public agency. (State CEQA Guidelines Section 15312.) Class 13: Acquisition of Lands for Wildlife Conservation Purposes. Acquisition of lands for fish and wildlife conservation purposes, including preservation of fish and wildlife habitat, establishment of ecological preserves under Fish and Game Code Section 1580, and preservation of access to public lands and waters where the purpose of the acquisition is to preserve the land in its natural condition. (State CEQA Guidelines Section 15313.) Class 14: Minor Additions to Schools. Minor additions to existing schools within existing school grounds where the addition does not increase original student capacity by more 25% or ten (10) classrooms, whichever is less. The addition of portable classrooms is included in this exemption. (State CEQA Guidelines Section 15314.) Class 15: Minor Land Divisions. Division(s) of property in urbanized areas zoned for residential, commercial or industrial use into four or fewer parcels when the division is in conformance with the General Plan and zoning, no variances or exceptions are required, all services and access to the proposed parcels to local standards are available, the parcel was not involved in a division of a larger parcel within the previous two (2) years, and the parcel does not have an average slope greater than 20%. (State CEQA Guidelines Section 15315.) Class 16: Transfer of Ownership of Land in Order to Create Parks. Acquisition, sale, or other transfer of land in order to establish a park where the land is in a natural condition or contains historical or archaeological resources and either: (a) The management plan for the park has not been prepared, or (b) The management plan proposes to keep the area in a natural condition or preserve the historic or archaeological resources. CEQA will apply when a management plan is proposed that will change the area from its natural condition or cause substantial adverse change in the significance of the historic or archaeological resource. (State CEQA Guidelines Section 15316.) Class 17: Open Space Contracts or Easements. Establishment of agricultural preserves, making and renewing of open space contracts under the Williamson Act, or acceptance of easements or fee interests in order to maintain the open space character of the area. (The cancellation of such preserves, contracts, interests or easements is not included in this exemption.) (State CEQA Guidelines Section 15317.) Class 18: Designation of Wilderness Areas. Designation of wilderness areas under the California Wilderness System. (State CEQA Guidelines Section 15318.) Class 19: Annexations of Existing Facilities and Lots for Exempt Facilities. This exemption applies only to the following annexations: 2019 City of Santa Ana Local Guidelines ©Best Best & Krieger LLP 75D-54 Local Guidelines for Implementing the California Environmental Quality Act (2019) ACTIVITIES EXEMPT FROM CEOA (a) Annexations to a city or special district of areas containing existing public or private structures developed to the density allowed by the current zoning or prezoning of either the gaining or losing governmental agency, whichever is more restrictive; provided, however, that the extension of utility services to the existing facilities would have a capacity to serve only the existing facilities; and (b) Annexations of individual small parcels of the minimum size for facilities exempted by Class 3, New Construction or Conversion of Small Structures. (State CEQA Guidelines Section 15319.) Class 20: Changes in Organization of Local Agencies. Changes in the organization of local governmental agencies where the changes do not change the geographical area in which previously existing powers are exercised. Examples include but are not limited to: (a) Establishment of a subsidiary district; (b) Consolidation of two or more districts having identical powers; and (c) Merger with a city of a district lying entirely within the boundaries of the city. (State CEQA Guidelines Section 15320.) Class 21: Enforcement Actions by Regulatory Agencies. Actions by regulatory agencies to enforce or revoke a lease, permit, license, certificate or other entitlement for use issued, adopted or prescribed by the regulatory agency or enforcement of a law, general rule, standard or objective administered or adopted by the regulatory agency; or law enforcement activities by peace officers acting under any law that provides a criminal sanction. The direct referral of a violation of lease, permit, license, certificate, or entitlement to the City Attorney for judicial enforcement is exempt under this Class. (Construction activities undertaken by the public agency taking the enforcement or revocation action are not included in this exemption.) (State CEQA Guidelines Section 15321.) Class 22: Educational or Training Programs Involving No Physical Changes. The adoption, alteration or termination of educational or training programs which involve no physical alteration in the area affected or which involve physical changes only in the interior of existing school or training structures. Examples include but are not limited to: (a) Development of or changes in curriculum or training methods; or (b) Changes in the trade structure in a school which do not result in changes in student transportation. (State CEQA Guidelines Section 15322.) Class 23: Normal Operations of Facilities for Public Gatherings. Continued or repeated normal operations of existing facilities for public gatherings for which the facilities were designed, where there is past history, of at least three years, of the facility being used for the same or similar purposes. Facilities included within this exemption include, but are not limited to, race tracks, stadiums, convention centers, auditoriums, amphitheaters, planetariums, swimming pools and amusement parks. (State CEQA Guidelines Section 15323.) 2019 City of Santa Ana Local Guidelines 3-23 ®Best Best & Krieger LLP 75D-55 Local Guidelines for Implementing the California Environmental Ouality Act (2019) ACTIVITIES EXEMPT FROM CEOA Class 24: Regulation of Working Conditions. Actions taken by the City to regulate employee wages, hours of work or working conditions where there will be no demonstrable physical changes outside the place of work. (State CEQA Guidelines Section 15324.) Class 25: Transfers of Ownership of Interest in Land to Preserve Existing Natural Conditions and Historical Resources. Transfers of ownership of interest in land in order to preserve open space, habitat, or historical resources. Examples include, but are not limited to, acquisition, sale, or other transfer of areas to: preserve existing natural conditions, including plant or animal habitats; allow continued agricultural use of the areas; allow restoration of natural conditions; preserve open space or lands for natural park purposes; or prevent encroachment of development into floodplains. This exemption does not apply to the development of parks or park uses. (State CEQA Guidelines Section 15325.) Class 26: Acquisition of Housing for Housing Assistance Programs. Actions by a redevelopment agency, housing authority or other public agency to implement an adopted Housing Assistance Plan by acquiring an interest in housing units, provided the housing units are either in existence or possessing all required permits for construction when the agency makes its final decision to acquire the units. (State CEQA Guidelines Section 15326.) Class 27: Leasing New Facilities. Leasing of a newly constructed or previously unoccupied privately owned facility by a local or state agency when the City determines that the proposed use of the facility: (a) Conforms with existing state plans and policies and with general, community, and specific plans for which an EIR or Negative Declaration has been prepared; (b) Is substantially the same as that originally proposed at the time the building permit was issued; (c) Does not result in a traffic increase of greater than 10% of front access road capacity; and (d) Includes the provision of adequate employee and visitor parking facilities. (State CEQA Guidelines Section 15327.) Class 28: Small Hydroelectric Proiects as Existing Facilities. Installation of certain small hydroelectric -generating facilities in connection with existing dams, canals and pipelines, subject to the conditions in State CEQA Guidelines Section 15328. (State CEQA Guidelines Section 15328.) Class 29: Cogeneration Projects at Existing Facilities. Installation of cogeneration equipment with a capacity of 50 megawatts or less at existing facilities meeting certain conditions listed in State CEQA Guidelines Section 15329. (State CEQA Guidelines Section 15329.) Class 30: Minor Actions to Prevent, Minimize, Stabilize, Mitigate or Eliminate the Release or Threat of Release of Hazardous Waste or Hazardous Substances. Any minor cleanup actions taken to prevent, minimize, stabilize, mitigate, or eliminate the release or threat of release of a hazardous waste or substance which are small or medium removal actions costing $1 million or less. (State CEQA Guidelines Section 15330.) 2019 City of Santa Ana Local Guidelines 3-24 ®Best Best & Krieger LLP 75D-56 Local Guidelines for Implementing the California Envimmnental Ouality Act (2019) ACTIVITIES EXEMPT FROM CEOA (a) No cleanup action shall be subject to this Class 30 exemption if the action requires the onsite use of a hazardous waste incinerator or thermal treatment unit or the relocation of residences or businesses, or the action involves the potential release into the air of volatile organic compounds as defined in Health and Safety Code Section 25123.6, except for small scale in situ soil vapor extraction and treatment systems which have been permitted by the local Air Pollution Control District or Air Quality Management District. All actions must be consistent with applicable state and local environmental permitting requirements including, but not limited to, off -site disposal, air quality rules such as those governing volatile organic compounds and water quality standards, and approved by the regulatory body with jurisdiction over the site; (b) Examples of such minor cleanup actions include but are not limited to: 1. Removal of sealed, non -leaking drums of hazardous waste or substances that have been stabilized, containerized and are designated for a lawfully permitted destination; 2. Maintenance or stabilization of berms, dikes, or surface impoundments; 3. Construction or maintenance or interim of temporary surface caps; 4. Onsite treatment of contaminated soils or sludge provided treatment system meets Title 22 requirements and local air district requirements; 5. Excavation and/or offsite disposal of contaminated soils or sludge in regulated units; 6. Application of dust suppressants or dust binders to surface soils; 7. Controls for surface water run-on and run-off that meets seismic safety standards; 8. Pumping of leaking ponds into an enclosed container; 9. Construction of interim or emergency ground water treatment systems; or 10. Posting of warning signs and fencing for a hazardous waste or substance site that meets legal requirements for protection of wildlife. Class 31: Historical Resource Restoration/Rehabilitation. Maintenance, repairs, stabilization, rehabilitation, restoration, preservation, conservation, or reconstruction of historical resources in a manner consistent with the Secretary of the Interior's Standards for the Treatment of Historic Properties with Guidelines for Preserving, Rehabilitating, Restoring, and Reconstructing Historic Buildings (1995), Weeks and Grimmer. (State CEQA Guidelines Section 15331.) Class 32: Infill Development Projects. Infill development meeting the following conditions: (a) The project is consistent with the applicable general plan designation and all applicable general plan policies as well as with applicable zoning designation and regulations; (b) The proposed development occurs within city limits on a project site of no more than five acres substantially surrounded by urban uses; (c) The project site has no value as habitat for endangered, rare or threatened species; (d) Approval of the project would not result in any significant effects relating to traffic, noise, air quality, or water quality; and 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-57 Local Guidelines for Implementing the CaliforniaEnvironmental Gual'ty Act (2019) ACTIVITIES EXEMPT FROM CEOA (e) The site can be adequately served by all required utilities and public services. (State CEQA Guidelines Section 15332.) Class 33: Small Habitat Restoration Projects. This exemption applies to projects to assure the maintenance, restoration, enhancement, or protection of habitat for fish, plants, or wildlife, provided that such projects meet the following criteria: (a) The project does not exceed five acres in size; (b) There would be no significant adverse impact on endangered, rare or threatened species or their habitat pursuant to Section 15065 of the State CEQA Guidelines; (c) There are no hazardous materials at or around the project site that may be disturbed or removed; and (d) The project will not result in impacts that are significant when viewed in connection with the effects of past projects, the effects of other current projects, and the effects of probable future projects. Examples of small habitat restoration projects include, but are not limited to: revegetation of disturbed areas with native plant species; wetland restoration, the primary purpose of which is to improve conditions for waterfowl or other species that rely on wetland habitat; stream or river bank revegetation, the primary purpose of which is to improve habitat for amphibians or native fish; projects to restore or enhance habitat that are carried out principally with hand labor and not mechanized equipment; stream or river bank stabilization with native vegetation or other bioengineering techniques, the primary purpose of which is to reduce or eliminate erosion and sedimentation; and culvert replacement conducted in accordance with published guidelines of DFW or NOAA Fisheries, the primary purpose of which is to improve habitat or reduce sedimentation. (State CEQA Guidelines Section 15333.) 2019 City of Santa Ana Local Guidelines CBest Best & Krieger LLP 75D-58 Local Guidelines for Implementing the California Environmental Ouality Act (2019) TIME LIMITATIONS 4. TIME LINIITATIONS 4.01 REVIEW OF PRIVATE PROJECT APPLICATIONS. Staff shall determine whether the application for a private project is complete within thirty (30) days of receipt of the application. No application may be deemed incomplete based on an applicant's refusal to waive the time limitations set forth in Local Guidelines Sections 4.03 and 4.04. Accepting an application as complete does not limit the authority of the City, acting as Lead Agency or Responsible Agency, to require the applicant to submit additional information needed for environmental evaluation of the project. Requiring such additional information after the application is complete does not change the status of the application. 4.02 DETERMINATION OF TYPE OF ENVIRONMENTAL DOCUMENT. Except as provided in Local Guidelines Sections 4.05 and 4.06, Staffs initial determination as to whether a Negative Declaration, Mitigated Negative Declaration or an EIR should be prepared shall be made within thirty (30) days from the date on which an application for a project is accepted as complete by the City. This period maybe extended fifteen (15) days with consent of the applicant and the City. 4.03 COMPLETION AND ADOPTION OF NEGATIVE DECLARATION. For private projects involving the issuance of a lease, permit, license, certificate, or other entitlement for use by one or more public agencies, the Negative Declaration/Mitigated Negative Declaration shall be completed and approved within one hundred eighty (180) days from the date when the City accepted the application as complete. In the event that compelling circumstances justify additional time and the project applicant and Lead Agency consent thereto, Staff may provide that the 180-day time limit may be extended once for a period of not more than 90 days. 4.04 COMPLETION AND CERTIFICATION OF FINAL EIR. For private projects, the Final EIR shall be completed and certified by the City within one (1) year after the date the City accepted the application as complete. In the event that compelling circumstances justify additional time and the project applicant consents thereto, the City may provide a one-time extension up to ninety (90) days for completing and certifying the EIR. 4.05 PROJECTS SUBJECT TO THE PERMIT STREAMLINING ACT. The Permit Streamlining Act requires agencies to make decisions on certain development project approvals within specified time limits. If a project is subject to the Permit Streamlining Act, the City cannot require the project applicant to submit the informational equivalent of an EIR or prove compliance with CEQA as a prerequisite to determining whether the project application is complete. In addition, if requested by the project applicant, the City must begin processing the project application prior to final CEQA action, provided the information necessary to begin the process is available. 2019 City of Santa Ana Local Guidelines 4-1 CBest Best & Krieger LLP 75D-59 Local Guidelines for Implementing the California Environmental Quality Act (2019) TIME LIMITATIONS Under the Permit Streamlining Act, the Lead Agency must approve or disapprove the development project application within one hundred eighty (180) days from the date on which it certifies the EIR, or within ninety (90) days of certification if an extension for completing and certifying the EIR was granted. If the Lead Agency adopts a Negative Declaration/Mitigated Negative Declaration or determines the development project is exempt from CEQA, it shall approve or disapprove the project application within sixty (60) days from the date on which it adopts the Negative Declaration/Mitigated Negative Declaration or determines that the project is exempt from CEQA. Except for waivers of the time periods for preparing a joint Environmental Impact Report/Environmental Impact Statement (as outlined in Government Code Sections 65951 and 65957), the City cannot require a waiver of the time limits specified in the Permit Streamlining Act as a condition of accepting or processing a development project application. In addition, the City cannot disapprove a development project application in order to comply with the time limits specified in the Permit Streamlining Act. 4.06 PROJECTS, OTHER THAN THOSE SUBJECT TO THE PERMIT STREAMLINING ACT, WITH SHORT TIME PERIODS FOR APPROVAL. A few statutes require agencies to make decisions on project applications within time limits that are so short that review of the project under CEQA would be difficult. To enable the City as Lead Agency to comply with both the enabling statute and CEQA, the City shall deem a project application as not received for filing under the enabling statute until such time as the environmental documentation required by CEQA is complete. This section applies where all of the following conditions are met: (a) The enabling statute for a program, other than development projects under Chapter 4.5 (commencing with Section 65920) of Division 1 of Title 7 of the Government Code, requires the City to take action on an application within a specified period of time of six (6) months or less; (b) The enabling statute provides that the project is approved by operation of law if the City fails to take any action within the specified time period; and (c) The project application involves the City's issuance of a lease, permit, license, certificate or other entitlement for use. In any case, the environmental document shall be completed or certified and the decision on the application shall be made within the period established by the Permit Streamlining Act (Government Code Sections 65920, et seq.). 4.07 WAIVER OR SUSPENSION OF TIME PERIODS. These deadlines may be waived by the applicant if the project is subject to both CEQA and the National Environmental Policy Act ("NEPA"). (State CEQA Guidelines Sections 15110 and 15224; see Section 5.04 of these Local Guidelines for information about projects that are subject to both CEQA and NEPA.) An unreasonable delay by an applicant in meeting the City's requests necessary for the preparation of a Negative Declaration, Mitigated Negative Declaration, or an EIR shall suspend 2019 City of Santa Ana Local Guidelines 4-2 ®Best Best & Krieger LLP 75D-60 Local Guidelines for Implementing the California Envimmnental Quality Act (2019) TIME LMETATIONS the running of the time periods described in Local Guidelines Sections 4.03 and 4.04 for the period of the unreasonable delay. Alternatively, the City may disapprove a project application where there is unreasonable delay in meeting requests. The City may also allow a renewed application to start at the same point in the process where the prior application was when it was disapproved. 2019 City of Santa Ana Local Guidelines 4-3 ®Best Best & Krieger LLP 75D-61 Local Guidelines for Implementing the California Environmental Ouality Act (2019) INITIAL STUDY 5. INITIAL STUDY 5.01 PREPARATION OF INITIAL STUDY. If the City determines that it is the Lead Agency for a project which is not exempt, the City will normally prepare an Initial Study to ascertain whether the project may have a substantial adverse effect on the environment, regardless of whether the overall effect of the project is adverse or beneficial. All phases of project planning, implementation and operation must be considered in the Initial Study. An Initial Study may rely on expert opinion supported by facts, technical studies or other substantial evidence. However, an Initial Study is neither intended nor required to include the level of detail included in an EIR. The City, as Lead Agency, may use any of the following arrangements or combination of arrangements to prepare an Initial Study: (1) Preparing the Initial Study directly with the City's own staff. (2) Contracting with another entity, public or private, to prepare the Initial Study. (3) Accepting a draft Initial Study prepared by the applicant, a consultant retained by the applicant, or any other third person. (4) Executing a third party contract or memorandum of understanding with the applicant to govern the preparation of an Initial Study by an independent contractor. (5) Using a previously prepared Initial Study. The Initial Study sent out for public review, however, must reflect the independent judgment of the Lead Agency. For private projects, the person or entity proposing to carry out the project shall complete Form "I" of these Local CEQA Guidelines, submit Form "T to the City, and submit all other data and information as may be required by the City to determine whether the proposed project may have a significant effect on the environment. All costs incurred by the City in reviewing the data and information submitted, or in conducting its own investigation based upon such data and information, or in preparing an Initial Study for the project shall be borne by the person or entity proposing to carry out the project. 5.02 INFORMAL CONSULTATION WITH OTHER AGENCIES. When more than one public agency will be involved in undertaking or approving a project, the Lead Agency shall consult with all Responsible and any Trustee Agencies. Such consultation shall be undertaken in compliance with the notice procedures applicable to the type of CEQA document being prepared. See Section 6.04, Negative Declarations, and Sections 7.03 and 7.25, EI Rs. When the City is acting as Lead Agency, the City may choose to engage in early consultation with Responsible and Trustee Agencies before the City begins to prepare the Initial 2019 City of Santa Ana Local Guidelines �-1 ®Best Best & Krieger LLP 75D-62 Local Guidelines for Implementing the California Enviromnental Ouality Act (2019) INITIAL STUDY Study. This early consultation may be done quickly and informally and is intended to ensure that the EIR, Negative Declaration or Mitigated Negative Declaration reflects the concerns of all Responsible Agencies that will issue approvals for the project and all Trustee Agencies responsible for natural resources affected by the project. The City's early consultation process may include consultation with other individuals or organizations with an interest in the project, if the City so desires. The CPR, upon request of the City or a private project applicant, shall assist in identifying the various Responsible Agencies for a proposed project and ensure that the Responsible Agencies are notified regarding any early consultation. In the case of a project undertaken by a public agency, the OPR, upon request of the City, shall ensure that any Responsible Agency or public agency that has jurisdiction by law with respect to the project is notified regarding any early consultation. If, during the early consultation process it is determined that the project will clearly have a significant effect on the environment, the City, as Lead Agency, may immediately dispense with the Initial Study and determine that an EIR is required. 5.03 CONSULTATION WITH PRIVATE PROJECT APPLICANT. During or immediately after preparation of an Initial Study for a private project, the City may consult with the applicant to determine if the applicant is willing to modify the project to reduce or avoid the significant effects identified in the Initial Study. If the project can be revised to avoid or mitigate effects to a level of insignificance and there is no substantial evidence before the City that the project, as revised, may have a significant effect on the environment, the City may prepare and adopt a Negative Declaration or Mitigated Negative Declaration. If any significant effect may still occur despite alterations of the project, an EIR must be prepared. 5.04 PROJECTS SUBJECT TO NEPA. Projects that are carried out, financed, or approved in whole or in part by a federal agency are subject to the provisions of NEPA in addition to CEQA. To the extent possible, the State CEQA Guidelines encourage the City, when it is a Lead Agency under CEQA, to use the federally -prepared Environmental Impact Statement ("EIS") or Finding of No Significant Impact ("FONSI") or to prepare a joint CEQA/NEPA document instead of preparing separate NEPA and CEQA documents for a project that is subject to both NEPA and CEQA. (State CEQA Guidelines Section 15220.) For example, the City should attempt to work in conjunction with the federal agency involved in the project to prepare a combined EIR-EIS or Negative Declaration-FONSI. (State CEQA Guidelines Section 15222.) To avoid the need for the federal agency to prepare a separate document for the same project, the Lead Agency must involve the federal agency in the preparation of the joint document. The Lead Agency may also enter into a Memorandum of Understanding with the federal agency to ensure that both federal and state requirements are met. The City is required to cooperate with the federal agency and to utilize joint planning processes, environmental research and studies, public hearings, and environmental documents to the fullest extent possible. (State CEQA Guidelines Section 15226.) However, since NEPA does not require an examination of mitigation measures or growth -inducing impacts, analysis of 2019 City of Santa Ana Local Guidelines 5-2 mBest Best & Krieger LLP 75D-63 Local Guidelines for Implementing the California Environmental Ouality Act (2019) INITIAL STUDY mitigation measures and growth -inducing impacts will need to be added before NEPA documents may be used to satisfy CEQA. (State CEQA Guidelines Section 15221.) For projects that are subject to NEPA, a scoping meeting held pursuant to NEPA satisfies the CEQA scoping requirement as long as notice is provided to the agencies and individuals listed in Local Guidelines Section 7.10, and provided in accordance with these Local Guidelines. If the federal agency refuses to cooperate with the City with regard to the preparation of joint documents, the City should attempt to involve a state agency in the preparation of the EIR, Negative Declaration, or Mitigated Negative Declaration. Since federal agencies are explicitly permitted to utilize environmental documents prepared by agencies of statewide jurisdiction, it is possible that the federal agency will reuse the state -prepared CEQA documents instead of requiring the applicant to fund a redundant set of federal environmental documents. (State CEQA Guidelines Section 15228.) Where the federal agency has circulated the EIS or FONSI and the circulation satisfied the requirements of CEQA and any other applicable laws, the City, when it is a Lead Agency under CEQA, may use the EIS or FONSI in place of an EIR or Negative Declaration without having to recirculate the federal documents. The City's intention to adopt the previously circulated EIS or FONSI must be publicly noticed in the same way as a Notice of Availability of a Draft EIR. Special rules may apply when the environmental documents are prepared for projects involving the reuse of military bases. (See State CEQA Guidelines Section 15225.) 5.05 AN INITIAL STUDY. The Initial Study shall be used to determine whether a Negative Declaration, Mitigated Negative Declaration or an EIR shall be prepared for a project. It provides written documentation of whether the City found evidence of significant adverse impacts which might occur. The purposes of an Initial Study are to: (a) Identify environmental impacts; (b) Enable an applicant or Lead Agency to modify a project, mitigating adverse impacts before an EIR is written; (c) Focus an EIR, if one is required, on potentially significant environmental effects; (d) Facilitate environmental assessment early in the design of a project; (e) Provide documentation of the factual basis for the finding in a Negative Declaration that a project will not have a significant effect on the environment; (f) Eliminate unnecessary EIRs; and (g) Determine whether a previously prepared EIR could be used for the project. 5.06 CONTENTS OF INITIAL STUDY. An Initial Study shall contain in brief form: (a) A description of the project, including the location of the project. The project description must be consistent throughout the environmental review process; 2019 City of Santa Ana Local Guidelines 5-3 ®Best Best & Krieger LLP 75D-64 Local Guidelines for Implementing the California Enviromnental Ouality Act (2019) MITIAL STUDY (b) An identification of the environmental setting. The environmental setting is usually the existing physical environmental conditions in the vicinity of the project, as they exist at the time the Notice of Preparation is published, or if no Notice of Preparation is published, such as in the case of a Negative Declaration or Mitigated Negative Declaration, at the time environmental analysis begins. The environmental setting should describe both the project site and surrounding properties. The description should include, but not necessarily be limited to, a discussion of existing structures, land use, energy supplies, topography, water usage, soil stability, plants and animals, and any cultural, historical, or scenic aspects. This environmental setting will normally constitute the baseline physical conditions against which a Lead Agency may compare the project to determine whether an impact is significant; (c) An identification of environmental effects by use of a checklist, matrix, or other method, provided that entries are briefly explained to show the evidence supporting the entries. The brief explanation may be through either a narrative or a reference to other information such as attached maps, photographs, or an earlier EIR or Negative Declaration or Mitigated Negative Declaration. A reference to another document should include a citation to the page or pages where the information is found; (d) A discussion of ways to mitigate any significant effects identified; (e) An examination of whether the project is consistent with existing zoning and local land use plans and other applicable land use controls; (f) The name of the person or persons who prepared or participated in the Initial Study; and (g) Identification of prior EIRs or environmental documents that could be used with the project. 5.07 USE OF A CHECKLIST INITIAL STUDY. When properly completed, the Environmental Checklist (Form "J") will meet the requirements of Local Guidelines Section 5.05 for an Initial Study provided that the entries on the checklist are explained. Either the Environmental Checklist (Form "J") should be expanded or a separate attachment should be prepared to describe the project, including its location, and to identify the environmental setting. California courts have rejected the use of a bare, unsupported Environmental Checklist as an Initial Study. An Initial Study must contain more than mere conclusions. It must disclose supporting data or evidence upon which the Lead Agency relied in conducting the Initial Study. The Lead Agency must augment checklists with supporting factual data and reference information sources when completing the forms. Explanation of all "potential impact" answers should be provided on attached sheets. For controversial projects, it is advisable to state briefly why "no" answers were checked. If practicable, attach a list of reference materials, such as prior EIRs, plans, traffic studies, air quality data, or other supporting studies. 5.08 EVALUATING SIGNIFICANT ENVIRONMENTAL EFFECTS. In evaluating the environmental significance of effects disclosed by the Initial Study, the Lead Agency shall consider: 2019 City of Santa Ana Local Guidelines 5-4 CBest Best & Krieger LLP 75D-65 Local Guidelines for Implementing the California Environmental Ouality Act (2019) INITIAL STUDY (a) Whether the Initial Study and/or any comments received informally during consultations indicate that a fair argument can be made that the project may have a significant adverse environmental impact that cannot be mitigated to a level of insignificance. Even if a fair argument can be made to the contrary, an EIR should be prepared; (b) Whether both primary (direct) and reasonably foreseeable secondary (indirect) consequences of the project were evaluated. Primary consequences are immediately related to the project, while secondary consequences are related more to the primary consequences than to the project itself. For example, secondary impacts upon the resources base, including land, air, water and energy use of an area, may result from population growth, a primary impact; (c) Whether adverse social and economic changes will result from a physical change caused by the project. Adverse economic and social changes resulting from a project are not, in themselves, significant environmental effects. However, if such adverse changes cause physical changes in the environment, those consequences may be used as the basis for finding that the physical change is significant; (d) Whether there is serious public controversy or disagreement among experts over the environmental effects of the project. However, the existence of public controversy or disagreement among experts does not, without more, require preparation of an EIR in the absence of substantial evidence of significant effects; (e) Whether the cumulative impact of the project is significant and whether the incremental effects of the project are "cumulatively considerable" (as defined in Local Guidelines Section 11.14) when viewed in connection with the effects of past projects, current projects, and probable future projects. The City may conclude that a project's incremental contribution to a cumulative effect is not cumulatively considerable if the project will comply with the requirements in a previously approved plan or mitigation program (including, but not limited to, water quality control plan, air quality attainment or maintenance plan, integrated waste management plan, habitat conservation plan, natural community conservation plan, plans or regulations for the reduction of greenhouse gas emissions) that provides specific requirements that will avoid or substantially lessen the cumulative problem. To be used for this purpose, such a plan or program must be specified in law or adopted by the public agency with jurisdiction over the affected resources through a public review process. In relying on such a plan or program, the City should explain which requirements apply to the project and ensure that the project's incremental contribution is not cumulatively considerable; and (1) Whether the project may cause a substantial adverse change in the significance of an archaeological or historical resource. The City may use a threshold of significance (as that term is defined in State CEQA Guidelines section 15064.7) to determine whether a project may cause a significant environmental impact. When using a threshold of significance, the City should briefly explain how compliance with the threshold means that the project's impacts are less than significant. Compliance with the threshold, however, does not relieve the City of the obligation to consider substantial evidence indicating that a project's environmental effects may still be significant. 2019 City of Santa Ana Local Guidelines ©Best Best & Krieger LLP 75D-66 Local Guidelines for Implementing the California Environmental Ouality Act (2019) INITIAL STUDY 5.09 DETERMINING THE SIGNIFICANCE OF TRANSPORTATION IMPACTS On or about December 28, 2018, the California Natural Resources Agency added a new section to the State CEQA Guidelines —Section 15064.3, entitled "Determining the Significance of Transportation Impacts." Section 15064.3(c) of the State CEQA Guidelines provides, in part: "A lead agency may elect to be governed by the provisions of this section immediately. Beginning on July 1, 2020, the provisions of this section shall apply statewide." The City hereby elects to be governed by the provisions of Section 15064.3 and incorporates those provisions herein. State CEQA Guidelines section 15064.3 provides: : ] .. : This section describes specific considerations for evaluating a project's transportation impacts. Generally, vehicle miles traveled is the most appropriate measure of transportation impacts. For the purposes of this section, "vehicle miles traveled" refers to the amount and distance of automobile travel attributable to a project. Other relevant considerations may include the effects of the project on transit and non -motorized travel. Except as provided in subdivision (b)(2) below (regarding roadway capacity), a project's effect on automobile delay shall not constitute a significant environmental impact. (b) Criteria for Analyzing Transportation Impacts. (1) Land Use Projects. Vehicle miles traveled exceeding an applicable threshold of significance may indicate a significant impact. Generally, projects within one- half mile of either an existing major transit stop or a stop along an existing high quality transit corridor should be presumed to cause a less than significant transportation impact. Projects that decrease vehicle miles traveled in the project area compared to existing conditions should be presumed to have a less than significant transportation impact. (2) Transportation Projects. Transportation projects that reduce, or have no impact on, vehicle miles traveled should be presumed to cause a less than significant transportation impact. For roadway capacity projects, agencies have discretion to determine the appropriate measure of transportation impact consistent with CEQA and other applicable requirements. To the extent that such impacts have already been adequately addressed at a programmatic level, such as in a regional transportation plan EIR, a lead agency may tier from that analysis as provided in Section 15152. (3) Qualitative Analysis. If existing models or methods are not available to estimate the vehicle miles traveled for the particular project being considered, a lead agency may analyze the project's vehicle miles traveled qualitatively. Such a qualitative analysis would evaluate factors such as the availability of transit, 2019 City of Santa Ana Local Guidelines 5-6 ®Best Best & Krieger LLP 75D-67 Local Guidelines for Implementing the California Environmental Ouality Act (2019) INITIAL STUDY proximity to other destinations, etc. For many projects, a qualitative analysis of construction traffic may be appropriate. (4) Methodology. A lead agency has discretion to choose the most appropriate methodology to evaluate a project's vehicle miles traveled, including whether to express the change in absolute terms, per capita, per household or in any other measure. A lead agency may use models to estimate a project's vehicle miles traveled, and may revise those estimates to reflect professional judgment based on substantial evidence. Any assumptions used to estimate vehicle miles traveled and any revisions to model outputs should be documented and explained in the environmental document prepared for the project. The standard of adequacy in Section 15151 shall apply to the analysis described in this section. (c) Applicability. The provisions of this section shall apply prospectively as described in section 15007. A lead agency may elect to be governed by the provisions of this section immediately. Beginning on July 1, 2020, the provisions of this section shall apply statewide. Consistent with State CEQA Guidelines section 15064.3, the City has adopted the thresholds of significance set forth in Table 1 below to guide when the City will normally determine that a project will have a significant transportation impact. Table 1 VMT Impact Thresholds Methods Project Threshold I Cumulative Threshold Land Use Plans (such as General Plans and Specific Plans) • Orange County Traffic A significant impact A significant impact would occur if Analysis Model would occur if the the project caused total daily VMT (OCTAM) forecast of project VMT/SP (for the within the City to be higher than the total daily vehicle miles land use plan) exceeds no project alternative under traveled per service 15% below the cumulative conditions. population (VMT/SP). Countywide average. To capture project effect, the same cumulative year population and employment growth totals should be used. The `project' only influences land use allocation. 2019 City of Santa Ana Local Guidelines 011est Best & Krieger LLP 75D-68 Local Guidelines for Implementing the California Environmental Ouality Act (2019) B4ITIAL STUDY Table 1 VMT Impact Thresholds Methods Project Threshold Cumulative Threshold • Consistency check with NA A significant impact would occur if the Southern California the project is determined to be Association of inconsistent with the RTP/SCS. Governments (SCAG) Regional Transportation Plan/Sustainable Communities Strategy (RTP/SCS). - Is the proposed project within the growth projections in the RTP/SCS? Land Use Projects • Transit Priority Area Presumed less than Project presumption applies under (TPA) screening. significant VMT impact cumulative conditions as long as for projects located in project is consistent with SCAG TPAs. RTP/SCS. • Low VMT area screening. Presumed less than Project presumption applies under significant VMT impact cumulative conditions as long as for projects located in project is consistent with SCAG low VMT generating RTP/SCS. model traffic analysis zones (TAZs). These TAZs generate total daily VMT/SP that is 15% less than the baseline level for the County. • Project type screening. Local serving retail Project presumption applies under projects (Per OPR's cumulative conditions as long as Technical Advisory less project is consistent with SCAG than 50,000 square feet) RTP/SCS. and neighborhood schools are presumed to have a less than significant VMT impact. Projects that generate less than 110 daily trips do not require VMT analysis. • VMT analysis using A significant impact A significant impact would occur if OCTAM forecast of total would occur if the the project is determined to be 2019 City of Santa Ana Local Guidelines 5-8 ®Best Best & Krieger LLP 75D-69 Local Guidelines for Implementing the California Environmental Ouality Act (2019) INITIAL STUDY Table 1 VMT Impact Thresholds Methods Project Threshold Cumulative Threshold daily VMT/SP. project generates inconsistent with the RTP/SCS. VMT/SP above 15% below the Countywide A significant impact would occur if average. the project causes total daily VMT within the City to be higher than the no project alternative under cumulative conditions. This analysis should be performed using the `project effect' method. Transportation Projects (thresholds may apply for SB 743 or GHG purposes) • OCTAM forecast of total A significant impact A significant impact would occur if citywide daily VMTI would occur if the the project caused total daily VMT project increased the within the City to be higher than the baseline VMT within the no build alternative under City. cumulative conditions. • Consistency check with NA A significant impact would occur if SCAG RTP/SCS the project is determined to be inconsistent with the RTP/SCS. The thresholds of significance set forth in Table 1 should be considered when determining a proposed project's potential transportation impacts under Forms J and S of these Local CEQA Guidelines. 5.10 MANDATORY FINDINGS OF SIGNIFICANT EFFECT. Whenever there is substantial evidence, in light of the whole record, that any of the conditions set forth below may occur, the Lead Agency shall find that the project may have a significant effect on the environment and thereby shall require preparation of an EIR: (a) The project has the potential to substantially degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self-sustaining levels, threaten to eliminate a plant or animal community, substantially reduce the number or restrict the range of a rare or endangered plant or animal, or eliminate important examples of major periods of California history or prehistory; (b) The project has the potential to achieve short-term environmental goals to the disadvantage of long-term environmental goals; I It is recommended that OCTAM is used to develop VMT estimates for transportation project impact assessment. However, the analyst must verify the model results for sensitivity to changes in VMT. Alternatively, if the model is not deemed appropriate, Robert Cevero's research on lane -mile elasticity and its relationship to VMT can be referenced. 2019 City of Santa Ana Local Guidelines CBest Best & Krieger LLP 75D-70 Local Guidelines for Implementing the California Environmental Ouality Act (2019) INITIAL STUDY (c) The project has possible environmental effects which are individually limited but cumulatively considerable, as defined in Local Guidelines Section 11.14. That is, the City, when acting as Lead Agency, is required to determine whether the incremental impacts of a project are cumulatively considerable by evaluating them against the back- drop of the environmental effects of the other projects; or (d) The environmental effects of a project will cause substantial adverse effects on humans either directly or indirectly. If, before the release of the CEQA document for public review, the potential for triggering one of the mandatory findings of significance is avoided or mitigation measures or project modifications reduce the potentially significant impacts to a point where clearly the mandatory finding of significance is not triggered, preparation of an EIR is not mandated. If the project's potential for triggering one of the mandatory findings of significance cannot be avoided or mitigated to a point where the criterion is clearly not triggered, an EIR shall be prepared, and the relevant mandatory findings of significance shall be used: (1) as thresholds of significance for purposes of preparing the EIR's impact analysis; (2) in making findings on the feasibility of alternatives or mitigation measures; (3) when found to be feasible, in making changes in the project to lessen or avoid the adverse environmental impacts; and (4) when necessary, in adopting a statement of overriding considerations. Although an EIR prepared for a project that triggers one of the mandatory findings of significance must use the relevant mandatory findings as thresholds of significance, the EIR need not conclude that the impact itself is significant. Rather, the City, as Lead Agency, must exercise its discretion and determine, on a case -by -case basis after evaluating all of the relevant evidence, whether the project's environmental impacts are avoided or mitigated below a level of significance or whether a statement of overriding considerations is required. With regard to a project that has the potential to substantially reduce the number or restrict the range of a protected species, the City, as Lead Agency, does not have to prepare an EIR solely due to that impact, provided the project meets the following three criteria: (a) The project proponent must be bound to implement mitigation requirements relating to such species and habitat pursuant to an approved habitat conservation plan and/or natural communities conservation plan; (b) The state or federal agency must have approved the habitat conservation plan and/or natural community conservation plan in reliance on an EIR and/or EIS; and (c) The mitigation requirements must either avoid any net loss of habitat and net reduction in number of the affected species, or preserve, restore, or enhance sufficient habitat to mitigate the reduction in habitat and number of the affected species below a level of significance. 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-71 Local Guidelines for Implementing the California Environmental Quality Act (2019) INITIAL STUDY 5.11 MANDATORY PREPARATION OF AN EIR FOR WASTE -BURNING PROJECTS. Lead Agencies shall prepare or cause to be prepared and certify the completion of an EIR, or, if appropriate, an Addendum, Supplemental EIR, or Subsequent EIR, for any project involving the burning of municipal wastes, hazardous waste or refuse -derived fuel, including, but not limited to, tires, if the project consists of any of the following: (a) The construction of a new facility; (b) The expansion of an existing hazardous waste burning facility which would increase its permitted capacity by more than 10%; (c) The issuance of a hazardous waste facilities permit to a land disposal facility, as defined in Local Guidelines Section 11.32; or (d) The issuance of a hazardous waste facilities permit to an offsite large treatment facility, as defined in Local Guidelines Sections 11.33 and 11.53. This section does not apply to projects listed in subsections (c) and (d), immediately above, if the facility only manages hazardous waste that is identified or listed pursuant to Health and Safety Code Section 25140 or 25141 or only conducts activities which are regulated pursuant to Health and Safety Code Sections 25100, et seq. The Lead Agency shall calculate the percentage of expansion for an existing facility by comparing the proposed facility's capacity with either of the following, as applicable: (a) The facility capacity authorized in the facility's hazardous waste facilities permit pursuant to Health and Safety Code Section 25200, or its grant of interim status pursuant to Health and Safety Code Section 25200.5, or the facility capacity authorized in any state or local agency permit allowing the construction or operation of the facility for the burning of hazardous waste granted before January 1, 1990; or (b) The facility capacity authorized in the facility's original hazardous facilities permit, grant of interim status, or any state or local agency permit allowing the construction or operation of a facility for the burning of hazardous waste, granted on or after January 1, 1990. This section does not apply to any project over which the State Energy Resources Conservation and Development Commission has assumed jurisdiction per Health and Safety Code Sections 25500 et seq. The EIR requirement is also subject to a number of exceptions for specific types of waste -burning projects. (Public Resources Code Section 21151.1 and State CEQA Guidelines Section 15081.5.) Even if preparation of an EIR is not mandatory for a particular type of waste - burning project, those projects are not exempt from the other requirements of CEQA, the State CEQA Guidelines, or these Local Guidelines. In addition, waste -burning projects are subject to special notice requirements under Public Resources Code Section 21092. Specifically, in addition to the standard public notices required by CEQA, notice must be provided to all owners and occupants of property located within one-fourth mile of any parcel or parcels on which the waste -burning project will be located. (Public Resources Code Section 21092(c); see Local Guidelines Sections 6.12 and 7.27.) 2019 City of Santa Ana Local Guidelines 5-11 ®Best Best & Krieger LLP 75D-72 Local Guidelines for Implementing the California Environmental Quality Act (2019) INITIAL STUDY 5.12 DEVELOPMENT PURSUANT TO AN EXISTING COMMUNITY PLAN AND EIR. Before preparing a CEQA document, Staff should determine whether the proposed project involves development consistent with an earlier zoning or community plan to accommodate a particular density for which an EIR has been certified. If an earlier EIR for the zoning or planning action has been certified, and if the proposed project concerns the approval of a subdivision map or development, CEQA applies only to the extent the project raises environmental effects peculiar to the parcel which were not addressed in the earlier EIR. Off -site and cumulative effects not discussed in the general plan EIR must still be considered. Mitigation measures set out in the earlier EIR should be implemented at this stage. Environmental effects shall not be considered peculiar to the parcel if uniformly applied development policies or standards have been previously adopted by a city or county with a finding based on substantial evidence that the policy or standard will substantially mitigate the environmental effect when applied to future projects. Examples of uniformly applied development policies or standards include, but are not limited to: parking ordinances; public access requirements; grading ordinances; hillside development ordinances; flood plain ordinances; habitat protection or conservation ordinances; view protection ordinances; and requirements for reducing greenhouse gas emissions as set forth in adopted land use plans, policies or regulations. Any rezoning action consistent with the Community Plan shall be subject to exemption from CEQA in accordance with this section. "Community Plan" means part of a city's general plan which: (1) applies to a defined geographic portion of the total area included in the general plan; (2) complies with Article 5 (commencing with Section 65300) of Chapter 3 of Division 1 of Title 7 of the Government Code by referencing each of the mandatory elements specified in Government Code Section 65302; and (3) contains specific development policies adopted for the area in the Community Plan and identifies measures to implement those policies, so that the policies which will apply to each parcel can be determined. 5.13 LAND USE POLICIES. When a project will amend a general plan or another land use policy, the Initial Study must address how the change in policy and its expected direct and indirect effects will affect the environment. When the amendments constitute substantial changes in policies that result in a significant impact on the environment, an EIR may be required. 5.14 EVALUATING IMPACTS ON HISTORICAL RESOURCES. Projects that may cause a substantial adverse change in the significance of a historical resource, as defined in Local Guidelines Section 11.28 are projects that may have a significant effect on the environment, thus requiring consideration under CEQA. Particular attention and care should be given when considering such projects, especially projects involving the demolition of a historical resource, since such demolitions have been determined to cause a significant effect on the environment. Substantial adverse change in the significance of a historical resource means physical demolition, destruction, relocation or alteration of the resource or its immediate surroundings, such that the significance of a historical resource would be materially impaired. 2019 City of Santa Ana Local Guidelines 5-12 OBest Best & Krieger LLP 75D-73 Local Guidelines for Implementing the California Environmental Ouality Act (2019) INITIAL STUDY The significance of a historical resource is materially impaired when a project: (a) Demolishes or materially alters in an adverse manner those physical characteristics of a historical resource that convey its historical significance and that justify its inclusion in, or eligibility for inclusion in, the California Register of Historical Resources; (b) Demolishes or materially alters in an adverse manner those physical characteristics that account for its inclusion in a local register of historical resources or its identification in a historical resources survey, unless the Lead Agency establishes by a preponderance of evidence that the resource is not historically or culturally significant; or (c) Demolishes or materially alters in an adverse manner those physical characteristics of a historical resource that convey its historical significance and that justify its eligibility for inclusion in the California Register of Historical Resources as determined by the Lead Agency for purposes of CEQA. Generally, a project that follows either one of the following sets of standards and guidelines will be considered mitigated to a level of less than significant: (a) the Secretary of the Interior's Standards for the Treatment of Historic Properties with Guidelines for Preserving, Rehabilitating, Restoring and Reconstructing Historic Buildings; or (b) the Secretary of the Interior's Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings (1995), Weeks and Grimmer. In the event of an accidental discovery of a possible historical resource during construction of the project, the City may provide for the evaluation of the find by a qualified archaeologist or other professional. If the find is determined to be a historical resource, the City should take appropriate steps to implement appropriate avoidance or mitigation measures. Work on non -affected portions of the project, as determined by the City, may continue during the process. Curation may be an appropriate mitigation measure for an artifact that must be removed during project excavation or testing. 5.15 EVALUATING IMPACTS ON ARCHAEOLOGICAL SITES. When a project will impact an archaeological site, the City shall first determine whether the site is a historical resource, as defined in Local Guidelines Section 11.28 If the archaeological site is a historical resource, it shall be treated and evaluated as such, and not as an archaeological resource. If the archaeological site does not meet the definition of a historical resource, but does meet the definition of a unique archaeological resource set forth in Public Resources Code Section 21083.2, the site shall be treated in accordance with said provisions of the Public Resources Code. The time and cost limitations described in Section 21083.2(c-f) do not apply to surveys and site evaluation activities intended to determine whether the project site contains unique archaeological resources. If the archaeological resource is neither a unique archaeological resource nor a historical resource, the effects of the project on those resources shall not be considered a significant effect on the environment. It shall be sufficient that both the resource and the effect on it are noted in the Initial Study or EIR, if one is prepared to address impacts on other resources, but they need not be considered further in the CEQA process. 2019 City of Santa Ana Local Guidelines 5-13 ®Best Best & Krieger LLP 75D-74 Local Guidelines for hnplementing the California Environmental Ouality Act (2019) MITIAL STUDY In the event of an accidental discovery of a possible unique archaeological resource during construction of the project, the City may provide for the evaluation of the find by a qualified archaeologist. If the find is determined to be a unique archaeological resource, the City should take appropriate steps to implement appropriate avoidance or mitigation measures. Work on non -affected portions of the project, as determined by the City, may continue during the process. Curation may be an appropriate mitigation measure for an artifact that must be removed during project excavation or testing. When an Initial Study identifies the existence of, or the probable likelihood of, Native American human remains within the Project, the City shall comply with the provisions of State CEQA Guidelines Section 15064.5(d). In the event of an accidental discovery or recognition of any human remains in any location other than a dedicated cemetery, the City shall comply with the provisions of State CEQA Guidelines Section 15064.5(e). 5.16 CONSULTATION WITH WATER AGENCIES REGARDING LARGE DEVELOPMENT PROJECTS. (a) Projects Subject to Consultation Requirements. For certain development projects, cities and counties must consult with water agencies. If the City is a municipal water provider, the city or county may request that the City prepare a water supply assessment to be included in the relevant environmental documentation for the project. The City may refer to this section when preparing such an assessment or when reviewing projects in its role as a Responsible Agency. This section applies only to water demand projects as defined by Local Guidelines Section 11.83. Program level environmental review may not need to be as extensive as project level environmental review. (See Local Guidelines Sections 8.03 and 8.08.) (b) Water Supply Assessment. When a city or county as Lead Agency determines the type of environmental document that will be prepared for a water demand project or any project that includes a water demand project, the city or county must identify any public water system (as defined in Local Guidelines Sections 11.59 and 11.83) that may supply water for the project. The city or county must also request that the public water system determine whether the projected demand associated with the project was included in the most recently adopted Urban Water Management Plan. The city or county must also request that the public water system prepare a specified water supply assessment for approval at a regular or special meeting of the public water system governing body. A sample request for a water supply assessment is provided as Form "N" of these Local CEQA Guidelines. If no public water system is identified that may supply water for the water demand project, the city or county shall prepare the water supply assessment. The city or county shall consult with any entity serving domestic water supplies whose service area includes the site of the water demand project, the local agency formation commission, and the governing body of any public water system adjacent to the site of the water demand project. The city council or 2019 City of Santa Ana Local Guidelines 5-14 CBest Best & Krieger LLP 75D-75 Local Guidelines for Implementing the California Environmental Ouality Act (2019) INITIAL STUDY county board of supervisors must approve the water assessment prepared pursuant to this paragraph at a regular or special meeting. As per Water Code section 10910, the water assessment must include identification of existing water supply entitlements, water rights, or water service contracts relevant to the water supply for the proposed project and water received in prior years pursuant to those entitlements, rights, and contracts, and further information is required if water supplies include groundwater. The water assessment must determine the ability of the public water system to meet existing and future demands along with the demands of the proposed water demand project in light of existing and future water supplies. This supply demand analysis is to be conducted via a twenty-year projection, and must assess water supply sufficiency during normal year, single dry year, and multiple dry year hydrology scenarios. If the public water agency concludes that the water supply is, or will be, insufficient, it must submit plans for acquiring additional water supplies. The city or county may grant the public water agency a thirty (30) day extension of time to prepare the assessment if the public water agency requests an extension within ninety (90) days of being asked to prepare the assessment. If the governing body of the public water system fails to request and receive an extension of time, or fails to submit the water assessment notwithstanding the thirty (30) day extension, the city or county may seek a writ of mandamus to compel the governing body of the public water system to comply. If a water -demand project has been the subject of a water assessment, no additional water assessment shall be required for subsequent water -demand projects that were included in the larger water -demand project if all of the following criteria are met: (1) The entity completing the water assessment concluded that its water supplies are sufficient to meet the projected water demand associated with the larger water - demand project, in addition to the existing and planned future uses, including, but not limited to, agricultural and industrial uses; and (2) None of the following changes has occurred since the completion of the water assessment for the larger water -demand project: (A) Changes in the larger water -demand project that result in a substantial increase in water demand for the water -demand project. (B) Changes in the circumstances or conditions substantially affecting the ability of the public water system identified in the water assessment to provide a sufficient supply of water for the water demand project. (C) Significant new information becomes available which was not known and could not have been known at the time when the entity had reached its assessment conclusions. (3) The city or county shall include the water assessment, and any water acquisition plan in the EK negative declaration, or mitigated negative declaration, or any supplement thereto, prepared for the project, and may include an evaluation of the water assessment and water acquisition plan information within such 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-76 Local Guidelines for Implementing the California Environmental Ouality Act (2019) INITIAL STUDY environmental document. A discussion of water supply availability should be included in the main text of the environmental document. Normally, this discussion should be based on the data and information included in the water supply assessment. In making its required findings under CEQA, the city or county shall determine, based on the entire record, whether projected water supplies will be sufficient to satisfy the demands of the project, in addition to existing and planned future uses. If a city or county determines that water supplies will not be sufficient, the city or county shall include that determination in its findings for the project. The degree of certainty regarding the availability of water supplies will vary depending on the stage of project approval. A Lead Agency should have greater confidence in the availability of water supplies for a specific project than might be required for a conceptual plan (i.e. general plan, specific plan). An analysis of water supply in an environmental document may incorporate by reference information in a water supply assessment, urban water management plan, or other publicly available sources. The analysis shall include the following: (1) Sufficient information regarding the project's proposed water demand and proposed water supplies to permit the Lead Agency to evaluate the pros and cons of supplying the amount of water that the project will need. (2) An analysis of the reasonably foreseeable environmental impacts of supplying water throughout all phases of the project. (3) An analysis of circumstances affecting the likelihood of the water's availability, as well as the degree of uncertainty involved. Relevant factors may include but are not limited to, drought, salt -water intrusion, regulatory or contractual curtailments, and other reasonably foreseeable demands on the water supply. (4) If the Lead Agency cannot determine that a particular water supply will be available, it shall conduct an analysis of alternative sources, including at least in general terms the environmental consequences of using those alternative sources, or alternatives to the project that could be served with available water. For complete information on these requirements, consult Water Code Sections 10910, et seq. For other CEQA provisions applicable to these types of projects, see Local Guidelines Sections 7.03 and 7.25. 5.17 SUBDIVISIONS WITH MORE THAN 500 DWELLING UNITS. Cities and counties must obtain written verification (see Form "O" for a sample) from the applicable public water system(s) that a sufficient water supply is available before approving certain residential development projects. If the City is a municipal water provider for a project, the city or county may request such a verification from the City. The City should also be aware of these requirements when reviewing projects in its role as a Responsible Agency. 2019 City of Santa Ana Local Guidelines 5-16 ®Best Best & Krieger LLP 75D-77 Local Guidelines for Implementing the California Environmental Ouality Act (2019) INITIAL STUDY Cities and counties are prohibited from approving a tentative map, parcel map for which a tentative map was not required, or a development agreement for a subdivision of property of more than 500 dwellings units, unless: (1) The City Council, Board of Supervisors, or the advisory agency receives written verification from the applicable public water system that a sufficient water supply is available; or (2) Under certain circumstances, the City Council, Board of Supervisors or the advisory agency makes a specified finding that sufficient water supplies are, or will be, available prior to completion of the project. For complete information on these requirements, consult Government Code Section 66473.7. 5.18 IMPACTS TO OAK WOODLANDS. When a county prepares an Initial Study to determine what type of environmental document will be prepared for a project within its jurisdiction, the county must determine whether the project may result in a conversion of oak woodlands that will have a significant effect on the environment. Normally, this rule will not apply to projects undertaken by the City. However, if the City is a Responsible Agency on such a project, the City should endeavor to ensure that the county, as Lead Agency, analyzes these impacts in accordance with CEQA. 5.19 CLIMATE CHANGE AND GREENHOUSE GAS EMISSIONS. A. Estimating or Calculating the Magnitude of the Project's Greenhouse Gas Emissions. The City shall analyze the greenhouse gas emissions of its projects as required by State CEQA Guidelines section 15064.4. For projects subject to CEQA, the City shall make a good - faith effort, based to the extent possible on scientific and factual data, to describe, calculate or estimate the amount of greenhouse gas emissions resulting from a project. In performing analysis of greenhouse gas emissions, the City, as Lead Agency, shall have discretion to determine, in the context of a particular project, whether to: (1) Quantify greenhouse gas emissions resulting from a project; and/ or (2) Rely on a qualitative analysis or performance -based standards. B. Factors in Determining Significance. In determining the significance of a project's greenhouse gas emissions, the City, when acting as Lead Agency, should focus its analysis on the reasonably foreseeable incremental contribution of the project's emissions to the effects of climate change. A project's incremental contribution may be cumulatively considerable even if it appears relatively small compared to statewide, national, or global emissions. The City's analysis should consider a timeframe that is 2019 City of Santa Ana Local Guidelines OBest Best & Krieger LLP 75D-78 Local Guidelines for Implementing the California Environmental Ouality Act (2019) INITIAL STUDY appropriate for the project. The City's analysis also must reasonably reflect evolving scientific knowledge and state regulatory schemes. Once the amount of a project's greenhouse gas emissions have been described, estimated, or calculated, the City should consider the following factors, among others, to determine whether those emissions are significant: (1) The extent to which the project may increase or reduce greenhouse gas emissions as compared to the existing environmental setting. Physical environmental conditions in the vicinity of the project, as they exist at the time the Notice of Preparation is published or the time when the environmental analysis is commenced, will normally constitute the baseline. All project phases, including construction and operation, should be considered in determining whether a project will cause emissions to increase or decrease as compared to the baseline; (2) Whether the project emissions exceed a threshold of significance that the Lead Agency determines applies to the project. The Lead Agency may rely on thresholds of significance developed by experts or other agencies, provided that application of the threshold and the significance conclusion is supported with substantial evidence. When relying on thresholds developed by other agencies, the Lead Agency should ensure that the threshold is appropriate for the project and the project's location; and (3) The extent to which the project complies with regulations or requirements adopted to implement a statewide, regional, or local plan for the reduction or mitigation of greenhouse gas emissions (see, e.g., State CEQA Guidelines Section 15183.5(b)). Such requirements must be adopted by the relevant public agency through a public review process and must reduce or mitigate the project's incremental contribution of greenhouse gas emissions. If there is substantial evidence that the possible effects of a particular project are still cumulatively considerable notwithstanding compliance with the adopted regulations or requirements, an EIR must be prepared for the project. In determining the significance of impacts, the Lead Agency may consider a project's consistency with the State's long-term climate goals or strategies, provided that substantial evidence supports the agency's analysis of how those goals or strategies address the project's incremental contribution to climate change and its conclusion that the project's incremental contribution is not cumulatively considerable. The Lead Agency may use a model or methodology to estimate greenhouse gas emissions resulting from a project. The Lead Agency has discretion to select the model or methodology it considers most appropriate to enable decision makers to intelligently take into account the project's incremental contribution to climate change. The Lead Agency must support its selection of a model or methodology with substantial evidence. The Lead Agency should explain the limitations of the particular model or methodology selected for use. 2019 City of Santa Ana Local Guidelines 5-18 ®Best Best & Krieger LLP 75D-79 Local Guidelines for Implementing the California Environmental Quality Act (2019) INITIAL STUDY C. Consistency with Applicable Plans. When an EIR is prepared, it must discuss any inconsistencies between the proposed project and any applicable general plan, specific plans, and regional plans. This includes, but is not limited to, any applicable air quality attainment plans, regional blueprint plans, or plans for the reduction of greenhouse gas emissions. D. Mitigation Measures Related to Greenhouse Gas Emissions. Lead Agencies must consider feasible means of mitigating the significant effects of greenhouse gas emissions. Any such mitigation measure must be supported by substantial evidence and be subject to monitoring or reporting. Potential mitigation will depend on the particular circumstances of the project, but may include the following, among others: (1) Measures in an existing plan or mitigation program for the reduction of emissions that are required as part of the Lead Agency's decision; (2) Reductions in emissions resulting from a project through implementation of project features, project design, or other measures, such as those described in State CEQA Guidelines Appendix F; (3) Off -site measures, including offsets that are not otherwise required, to mitigate a project's emissions; (4) Measures that sequester greenhouse gases; and (5) In the case of the adoption of a plan, such as a general plan, long range development plan, or plan for the reduction of greenhouse gas emissions, mitigation may include the identification of specific measures that may be implemented on a project -by -project basis. Mitigation may also include the incorporation of specific measures or policies found in an adopted ordinance or regulation that reduces the cumulative effect of emissions. E. Streamlined Analysis of Greenhouse Gas Emissions. Under certain limited circumstances, the legislature has specifically declared that the analysis of greenhouse gas emissions or climate change impacts may be limited. Public Resources Code Sections 21155, 21155.2, and 21159.28 provide that if certain residential, mixed use and transit priority projects meet specified ratios and densities, then the lead agencies for those projects may conduct a limited review of greenhouse gas emissions or may be exempted from analyzing global warming impacts that result from cars and light duty trucks, if a detailed list of requirements is met. However, unless the project is exempt from CEQA, the Lead Agency must consider whether such projects will result in greenhouse gas emissions from other sources, including, but not limited to, energy use, water use, and solid waste disposal. 2019 City of Santa Ana Local Guidelines 5-19 CBest Best & Krieger LLP 75D-80 Local Guidelines for implementing the California En ' onmental Ouality Act (2019) INITIAL STUDY F. Tiering. The City may analyze and mitigate the significant effects of greenhouse gas emissions at a programmatic level. Later project -specific environmental documents may then tier from and/or incorporate by reference that existing programmatic review. G. Plans for the Reduction of Greenhouse Gas Emissions. Public agencies may choose to analyze and mitigate greenhouse gas emissions in a plan for the reduction of greenhouse gas emissions or in a similar document. A plan for the reduction of greenhouse gas emissions should: (1) Quantify greenhouse gas emissions, both existing and projected over a specified time period, resulting from activities within a defined geographic area; (2) Establish a level, based on substantial evidence, below which the contribution to greenhouse gas emissions from activities covered by the plan would not be cumulatively considerable; (3) Identify and analyze the greenhouse gas emissions resulting from specific actions or categories of actions anticipated within the geographic area; (4) Specify measures or a group of measures, including performance standards, that substantial evidence demonstrates, if implemented on a project -by -project basis, would collectively achieve the specified emissions level; (5) Establish a mechanism to monitor the plan's progress toward achieving the level and to require amendment if the plan is not achieving specified levels; and (6) Be adopted in a public process following environmental review. A plan for the reduction of greenhouse gas emissions, once adopted following certification of an EIR, or adoption of another environmental document, may be used in the cumulative impacts analysis of later projects. An environmental document that relies on a plan for the reduction of greenhouse gas emissions for a cumulative impacts analysis must identify those requirements specified in the plan that apply to the project, and, if those requirements are not otherwise binding and enforceable, incorporate those requirements as mitigation measures applicable to the project. If there is substantial evidence that the effects of a particular project may be cumulatively considerable notwithstanding the project's compliance with the specified requirements in the plan for reduction of greenhouse gas emissions, an EIR must be prepared for the project. H. Analyzing the Effects of Climate Change on the Project. Where an EIR is prepared for a project, the EIR shall analyze any significant environmental effects the project might cause by bringing development and people into the project area that may be affected by climate change. In particular, the EIR should evaluate any potentially significant impacts of locating development in areas susceptible to hazardous 2019 City of Santa Ana Local Guidelines 5-20 ®Best Best & Krieger LLP 75D-81 Local Guidelines for Implementing the California Environmental Quality Act (2019) INITIAL STUDY conditions (e.g., floodplains, coastlines, wildfire risk areas) as identified in authoritative hazard maps, risk assessments or in land use plans addressing such hazards areas. The analysis may be limited to the potentially significant effects of locating the project in a potentially hazardous location. Further, this analysis may be limited by the project's life in relation to the potential of such effects to occur and the availability of existing information related to potential future effects of climate change. Further, the EIR need not include speculation regarding such future effects. 5.20 ENERGY CONSERVATION. Potentially significant energy implications of a project must be considered in an EIR to the extent relevant and applicable to the project. Therefore, the project description should identify the following as applicable or relevant to the particular project: (1) Energy consuming equipment and processes which will be used during construction, operation and/or removal of the project. If appropriate, this discussion should consider the energy intensiveness of materials and equipment required for the project; (2) Total energy requirements of the project by fuel type and end use; (3) Energy conservation equipment and design features; (4) Identification of energy supplies that would serve the project; and (5) Total estimated daily vehicle trips to be generated by the project and the additional energy consumed per trip by mode. As described in Local Guidelines Section 5.06, above, an initial study must include a description of the environmental setting. The discussion of the environmental setting may include existing energy supplies and energy use patterns in the region and locality. The City may also consider the extent to which energy supplies have been adequately considered in other environmental documents. Environmental impacts may include: (1) The project's energy requirements and its energy use efficiencies by amount and fuel type for each stage of the project including construction, operation, maintenance and/or removal. If appropriate, the energy intensiveness of materials may be discussed; (2) The effects of the project on local and regional energy supplies and on requirements for additional capacity; (3) The effects of the project on peak and base period demands for electricity and other forms of energy; (4) The degree to which the project complies with existing energy standards; (5) The effects of the project on energy resources; and/or 2019 City of Santa Ana Local Guidelines ©Best Best & Krieger LLP 75D-82 Local Guidelines for Implementing the California Environmental Quality Act (2019) W"TAL STUDY (6) The project's projected transportation energy use requirements and its overall use of efficient transportation alternatives. As discussed above in Section 5.06, the Initial Study must identify the potential environmental effects of the proposed activity. That discussion must include the unavoidable adverse effects. Unavoidable adverse effects may include wasteful, inefficient and unnecessary consumption of energy during the project construction, operation, maintenance and/or removal that cannot be feasibly mitigated. When discussing energy conservation, alternatives should be compared in terms of overall energy consumption and in terms of reducing wasteful, inefficient and unnecessary consumption of energy. 5.21 ENVIRONMENTAL IMPACT ASSESSMENT. The Initial Study identifies which environmental impacts may be significant. Based upon the Initial Study, Staff shall determine whether a proposed project may or will have a significant effect on the environment. Such determination shall be made in writing on the Environmental Impact Assessment Form (Form "C"). If Staff finds that a project will not have a significant effect on the environment, it shall recommend that a Negative Declaration be prepared and adopted by the decision -making body. If Staff finds that a project may have a significant effect on the environment, but the effects can be mitigated to a level of insignificance, it shall recommend that a Mitigated Negative Declaration be prepared and adopted by the decision - making body. If Staff finds that a project may have a significant effect on the environment, it shall recommend that an EIR be prepared and certified by the decision -making body. 5.22 FINAL DETERMINATION. The City Council shall have the final responsibility for determining whether an EIR, Negative Declaration or Mitigated Negative Declaration shall be required for any project. The City Council's determination shall be final and conclusive on all persons, including Responsible Agencies and Trustee Agencies, except as provided in Section 15050(c) of the State CEQA Guidelines. Additionally, in the event the City Council has delegated authority to a subsidiary board or official to approve a project, the City Council also hereby delegates to that subsidiary board or official the authority to make all necessary CEQA determinations, including whether an EIR, Negative Declaration, Mitigated Negative Declaration or exemption shall be required for any project. A subsidiary board or official's CEQA determination shall be subject to appeal consistent with the City's established procedures for appeals. 2019 City of Santa Ana Local Guidelines 5-22 OBest Best & Krieger LLP 75D-83 Local Guidelines for Implementing the California Envimnmenml Ouality Act (2019) NEGATIVE DECLARATION 6. NEGATIVE DECLARATION 6.01 DECISION TO PREPARE A NEGATIVE DECLARATION. A Negative Declaration (Form "E") shall be prepared for a project subject to CEQA when the Initial Study shows that there is no substantial evidence in light of the whole record that the project may have a significant or potentially significant adverse effect on the environment. (See Local Guidelines Sections 11.65 and 11.71.) 6.02 DECISION TO PREPARE A MITIGATED NEGATIVE DECLARATION. A Mitigated Negative Declaration (Form "E") shall be prepared for a project subject to CEQA when the Initial Study identifies potentially significant effects on the environment, but: (a) The project applicant has agreed to revise the project or the City can revise the project to avoid these significant effects or to mitigate the effects to a point where it is clear that no significant effects would occur; or (b) There is no substantial evidence in light of the whole record before the City that the revised project may have a significant effect. It is insufficient to require an applicant to adopt mitigation measures after final adoption of the Mitigated Negative Declaration or to state that mitigation measures will be recommended on the basis of a future study. The City must know the measures at the time the Mitigated Negative Declaration is adopted in order for them to be evaluated and accepted as adequate mitigation. Evidence of agreement by the applicant to such mitigation should be in the record prior to public review. Except where noted, the procedural requirements for the preparation and approval of a Negative Declaration and Mitigated Negative Declaration are the same. 6.03 CONTRACTING FOR PREPARATION OF NEGATIVE DECLARATION OR MITIGATED NEGATIVE DECLARATION. The City, when acting as Lead Agency, is responsible for preparing all documents required pursuant to CEQA. The documents may be prepared by Staff or by private consultants pursuant to a contract with the City, but they must be the City's product and reflect the independent judgment of the City. 6.04 NOTICE OF INTENT TO ADOPT A NEGATIVE DECLARATION OR MITIGATED NEGATIVE DECLARATION. When, based upon the Initial Study, it is recommended to the decision -making body that a Negative Declaration or Mitigated Negative Declaration be adopted, a Notice of Intent to Adopt a Negative Declaration or Mitigated Negative Declaration (Form "D") shall be prepared. In addition to being provided to the public through the means set forth in Local Guidelines Section 6.07, this Notice shall also be provided to: (a) Each Responsible and Trustee Agency; (b) Any other federal, state, or local agency that has jurisdiction by law or exercises authority over resources affected by the project, including: 2019 City of Santa Ana Local Guidelines OBest Best & Krieger LLP 75D-84 Local Guidelines for Implementing the California Environmental Ouality Act (2019) NEGATIVE DECLARATION (1) Any water supply agency consulted under Local Guidelines Section 5.16; (2) Any city or county bordering on the project area; (3) For a project of statewide, regional, or area -wide significance, to any transportation agencies or public agencies which have major local arterials or public transit facilities within five (5) miles of the project site or freeways, highways, or rail transit service within ten (10) miles of the project site which could be affected by the project; and (4) For a subdivision project located within one mile of a facility of the State Water Resources Development System, to the California Department of Water Resources; (c) The last known name and address of all organizations and individuals who have previously filed a written request with the City to receive these Notices; (d) For certain projects that may impact a low-level flight path, military impact zone, or special use airspace and that meet the other criteria of Local Guidelines Section 6.05, to the specified military services contact; (e) For certain projects that involve the construction or alteration of a facility anticipated to include hazardous air emissions or handle hazardous substances within one -quarter mile of a school and that meet the other requirements of Local Guidelines Section 6.06, to any potentially affected school district; (f) For certain waste -burning projects that meet the requirements of Local Guidelines Section 5.11 (regarding mandatory preparation of EIR) (see also Local Guidelines Section 7.27), to the owners and occupants of property within one-fourth mile of any parcel on which the project will be located; and (g) For a project that establishes or amends a redevelopment plan that contains land in agricultural use, notice shall be provided to the agricultural and farm agencies and organizations specified in Health and Safety Code Section 33333.3. Additionally, for a project of statewide, regional, or area -wide significance, the Lead Agency should also consult with public transit agencies with facilities within one-half mile of the proposed project. A copy of the proposed Negative Declaration or Mitigated Negative Declaration and the Initial Study shall be attached to the Notice of Intent to Adopt that is sent to every Responsible Agency and Trustee Agency concerned with the project and every other public agency with jurisdiction by law over resources affected by the project. The Notice of Intent to Adopt a Negative Declaration (Form "D") must be filed and posted with the County Clerk at least twenty (20) days —or, in cases subject to review by the State Clearinghouse, posted by the County Clerk and the State Office and Planning and Research at least thirty (30) days —before the final adoption of the Negative Declaration or Mitigated Negative Declaration by the decision -making body (see Local Guidelines Section 6.10). 2019 City of Santa Ana Local Guidelines 6-2 ®Best Best & Krieger LLP 75D-85 Local Guidelines for Implementing the California Environmental Quality Act (2019) NEGATIVE DECLARATION The City requires requests for notices to be in writing and to be renewed annually. If the City is not otherwise required by CEQA or another regulation to provide notice, the City may charge a fee for providing notices to individuals or organizations that have submitted written requests to receive such notices, unless the request is made by another public agency. If the Negative Declaration or Mitigated Negative Declaration has been submitted to the State Clearinghouse for circulation, the public review period shall be at least as long as the period of review by the State Clearinghouse. (See Local Guidelines Section 6.10.) Day one of the state review period shall be the date that the State Clearinghouse distributes the document to state agencies. If the Lead Agency is submitting a Negative Declaration or Mitigated Negative Declaration to the State Clearinghouse, the Notice of Completion form may be used. The Notice of Intent to Adopt a Negative Declaration or Mitigated Negative Declaration shall contain the following information: (a) The period during which comments shall be received; (b) The date, time and place of any public meetings or hearings on the proposed project; (c) A brief description of the proposed project and its location; (d) The address where copies of the proposed Negative Declaration or Mitigated Negative Declaration and all documents incorporated by reference in the proposed Negative Declaration or Mitigated Negative Declaration are available for review; (e) A description of how the proposed Negative Declaration or Mitigated Negative Declaration can be obtained in electronic format; (f) The Environmental Protection Agency ("EPA") list on which the proposed project site is located, if applicable, and the corresponding information from the applicant's statement (see Local Guidelines Section 2.04); and (g) The significant effects on the environment, if any, anticipated as a result of the proposed project. 6.05 PROJECTS AFFECTING MILITARY SERVICES; DEPARTMENT OF DEFENSE NOTIFICATION. CEQA imposes additional requirements to provide notice to potentially affected military agencies when: (a) The project meets one of the following three criteria: (1) The project includes a general plan amendment; (2) The project is of statewide, regional, or area -wide significance; or (3) The project relates to a public use airport or certain lands surrounding a public use airport; and (b) A "military service" (defined in Section 11.42 of these Local Guidelines) has provided its contact office and address and notified the Lead Agency of the specific boundaries of a "low-level flight path" (defined in Section 11.37 of these Local Guidelines), "military 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-86 Local Guidelines for Implementing the California En irumnental Ouality Act (2019) NEGATIVE DECLARATION impact zone" (defined in Section 11.41 of these Local Guidelines), or "special use airspace" (defined in Section 11.67 of these Local Guidelines). When a project meets these requirements, the City must provide the military service's designated contact with a copy of the Notice of Intent to Adopt a Negative Declaration or Mitigated Negative Declaration that has been prepared for the project, unless the project involves the remediation of lands contaminated with hazardous wastes and meets certain other requirements. See Public Resources Code Sections 21080.4 and 21092 and Health and Safety Code Sections 25300, et seq.; 25396; and 25187. The City must provide the military service with sufficient notice of its intent to adopt a Negative Declaration or Mitigated Negative Declaration to ensure that the military service has no fewer than twenty (20) days to review the documents before they are approved, provided that the military service shall have a minimum of thirty (30) days to review the environmental documents if the documents have been submitted to the State Clearinghouse. See State CEQA Guidelines Sections 15105(b) and 15190.5(c). 6.06 SPECIAL FINDINGS REQUIRED FOR FACILITIES THAT MAY EMIT HAZARDOUS AIR EMISSIONS NEAR SCHOOLS. Special procedural rules apply to projects involving the construction or alteration of a facility within one -quarter mile of a school/schools when: (1) the facility might reasonably be anticipated to emit hazardous air emissions or to handle an extremely hazardous substance or a mixture containing extremely hazardous substances in a quantity equal to or greater than the threshold specified in Health and Safety Code Section 255320), and (2) the emissions or substances may pose a health or safety hazard to persons who would attend or would be employed at the school. If the project meets both of those criteria, a Lead Agency may not approve a Negative Declaration or a Mitigated Negative Declaration unless both of the following have occurred: (a) The Lead Agency consulted with the affected school district or districts having jurisdiction over the school regarding the potential impact of the project on the school; and (b) The school district(s) was given written notification of the project not less than thirty (30) days prior to the proposed approval of the Negative Declaration. When the City is considering the adoption of a Negative Declaration or Mitigated Negative Declaration for a project that meets these criteria, it can satisfy this requirement by providing the Notice of Intent to Adopt a Negative Declaration or Mitigated Negative Declaration, the proposed Negative Declaration or Mitigated Negative Declaration, and the Initial Study to the potentially affected school district at least thirty (30) days before the decision -making body will consider the adoption of the Negative Declaration or Mitigated Negative Declaration. See also Local Guidelines Section 6.04. Implementation of this Guideline shall be consistent with the definitions and terms utilized in State CEQA Guidelines Section 15186. 2019 City of Santa Ana Local Guidelines 6-4 ®Best Best & Krieger LLP 75D-87 Local Guidelines for Implementing the California Environmental Ouality Act (2019) NEGATIVE DECLARATION 6.07 CONSULTATION WITH CALIFORNIA NATIVE AMERICAN TRIBES. Prior to the release of a Notice of Intent to Adopt a Negative Declaration or Mitigated Negative Declaration for a project, the Lead Agency shall begin consultation with a California Native American tribe that is traditionally and culturally affiliated with the geographic area of the proposed project if-. (a) The California Native American tribe requested to the Lead Agency, in writing, to be informed by the Lead Agency through formal notification of proposed projects in the geographic area that is traditionally and culturally affiliated with the tribe; and (b) The California Native American tribe responds, in writing, within 30 days of receipt of the formal notification, and requests the consultation. The California Native American tribe shall designate a lead contact person when responding to the Lead Agency. If a lead contact is not designated by the California Native American tribe, or it designates multiple lead contact people, the Lead Agency shall defer to the individuals listed on the contact list maintained by the Native American Heritage Commission. Consultation is defined in Local Guidelines Section 11.12. To expedite the requirements of this section, the Native American Heritage Commission shall assist the Lead Agency in identifying the California American Native tribes that are traditionally and culturally affiliated with the project area. Within 14 days of determining that an application for a project is complete or a decision by a public agency to undertake a project, the Lead Agency shall provide formal notification to the designated contact of, or a trial representative of, traditionally and culturally affiliated California Native America tribes that have requested notice, which shall be accomplished by at least one written notification that includes a brief description of the proposed project and its location, the Lead Agency contact information, and a notification that the California Native American tribe has 30 days to request consultation. The Lead Agency shall begin the consultation process within 30 days of receiving a California Native American tribe's request for consultation. If consultation is requested, the parties may propose mitigation measures, including those set forth in Public Resources Code Section 21084.3, capable of avoiding or substantially lessening potential significant impacts to a tribal cultural resource or alternatives that would avoid significant impacts to a tribal cultural resource. The consultation may include discussion concerning the type of environmental review necessary, the significance of tribal cultural resources, the significance of the project's impacts on the tribal cultural resources, and, if necessary, project alternatives or the appropriate measures for preservation or mitigation that the California Native American tribe may recommend to the Lead Agency. The consultation shall be considered concluded when either of the following occurs: 2019 City of Santa Ana Local Guidelines CBest Best & Krieger LLP 75D-88 Local Guidelines for Implementing the California Environanental Ouality Act (2019) NEGATIVE DECLARATION (1) The parties agree to measures to mitigate or avoid a significant effect, if a significant effect exists, on a tribal cultural resource. (2) A party, acting in good faith and after reasonable effort, concludes that mutual agreement cannot be reached. The California Native American tribe is not limited in its ability to submit information to the lead agency regarding the significance of the tribal cultural resources, the significance of the project's impact on tribal cultural resources, or any appropriate measures to mitigate the impacts. Additionally, the lead agency or project proponent is not limited in its ability to incorporate changes and additions to the project as a result of the consultation, even if not legally required. 6.08 IDENTIFICATION OF TRIBAL CULTURAL RESOURCES AND PROCESSING OF INFORMATION AFTER CONSULTATION WITH THE CALIFORNIA NATIVE AMERICAN TRIBE After consultation with the California Native American tribe listed above in Local Guidelines Section 6.07, any mitigation measures agreed upon in the consultation conducted pursuant to Public Resources Code section 21080.3.2 shall be recommended for inclusion in the Mitigated Negative Declaration and in an adopted mitigation monitoring and reporting program, if the mitigation measures are determined to avoid or lessen the proposed project's impacts on tribal cultural resources, and if the mitigation measures are enforceable. If a project may have a significant impact on a tribal cultural resource, the Lead Agency's Mitigated Negative Declaration shall discuss both of the following: (a) Whether the proposed project has a significant impact on an identified tribal cultural resource; (b) Whether feasible alternatives or mitigation measures, including those measures that may be agreed to during the consultation, avoid or substantially lessen the impact on the identified tribal cultural resource. Any information provided regarding the location, description and use of the tribal cultural resource that is submitted by a California Native American tribe during the environmental review process shall not be included in the Negative Declaration or Mitigated Negative Declaration or otherwise disclosed by the Lead Agency or any other public agency to the public, consistent with Governmental Code Sections 6254(r) and 6254.10, and State CEQA Guidelines 15120(d), without the prior consent of the tribe that provided the information. If the Lead Agency publishes any information submitted by a California Native American tribe during the consultation or environmental review process, that information shall be published in a confidential appendix to the Negative Declaration or Mitigated Negative Declaration unless the tribe provides consent, in writing, to the disclosure of some or all of the information to the public. This does not prohibit the confidential exchange of the submitted information between public agencies that have lawful jurisdiction over the preparation of the Negative Declaration or the Mitigated Negative Declaration. 2019 City of Santa Ana Local Guidelines 6-6 ®Best Best & Krieger LLP 75D-89 Local Guidelines for Implementing the California Environmental Quality Act (2019) NEGATIVE DECLARATION The exchange of confidential information regarding tribal cultural resources submitted by a California Native American tribe during the consultation or environmental review process among the Lead Agency, the California Native American tribe, the project applicant, or the project applicant's agent is not prohibited by Public Resources Code Section 21082.3. The project applicant and the project applicant's legal advisers must use a reasonable degree of care and maintain the confidentiality of the information exchanged for the purposes of preventing looting, vandalism, or damage to tribal cultural resources and shall not disclose to a third party confidential information regarding the cultural resource unless the California Native American tribe providing the information consents in writing to the public disclosure of such information. Public Resources Code Section 21082.3 does not prevent a Lead Agency or other public agency from describing the information in general terms in the Negative Declaration or Mitigated Negative Declaration so as to inform the public of the basis of the Lead Agency's or other public agency's decision without breaching the confidentiality required. In addition, a Lead Agency may adopt a Mitigated Negative Declaration for a project with a significant impact on an identified tribal cultural resource only if one of the following occurs: (a) The consultation process between the California Native American tribe and the Lead Agency has occurred as provided in Public Resources Code Sections 21080.3.1 and 21080.3.2 and concluded pursuant to subdivision (b) of Section 21080.3.2. (b) The California Native American tribe has requested consultation pursuant to Public Resources Code Section 21080.3.1 and has failed to provide comments to the Lead agency, or otherwise failed to engage, in the consultation process. (c) The Lead Agency has complied with subdivision (d) of Section 21080.3.1 of the Public Resources Code and the California Native American tribe has failed to request consultation within 30 days. If substantial evidence demonstrates that a project will cause a significant effect to a tribal cultural resource but the decision -makers do not include the mitigation measures recommended by the staff in the Mitigated Negative Declaration, or if there are no agreed upon mitigation measures at the conclusion of the consultation; or if no consultation has occurred, the Lead Agency must still consider the adoption of feasible mitigation. 6.09 SIGNIFICANT ADVERSE IMPACTS TO TRIBAL CULTURAL RESOURCES Public agencies shall, when feasible, avoid damaging effects to any tribal cultural resource. If the Lead Agency determines that a project may cause a substantial adverse change to a tribal cultural resource, and measures are not otherwise identified in the consultation process provided in Public Resources Code section 21080.3.2 and as set forth in Local Guidelines Section 6.07, the following examples of mitigation measures, if feasible, may be considered to avoid or minimize the significant adverse impacts: (a) Avoidance and preservation of the resources in place, including, but not limited to, planning and construction to avoid the resources and protect the cultural and 2019 City of Santa Ana Local Guidelines 6-7 ®Best Best & Krieger LLP 75D-90 Local Guidelines for Implementing the California Environmental Ouality Act (2019) NEGATIVE DECLARATION natural context, or planning greenspace, parks, or other open space, to incorporate the resources with culturally appropriate protection and management criteria. (b) Treating the resource with culturally appropriate dignity taking into account the tribal cultural values and meaning of the resource, including, but not limited to, the following: (1) Protecting the cultural character and integrity of the resource. (2) Protecting the traditional use of the resource. (3) Protecting the confidentiality of the resource. (c) Permanent conservation easements or other interests in real property, with culturally appropriate management criteria for the purposes of preserving or utilizing the resources or places. (d) Protecting the resource. 6.10 POSTING AND PUBLICATION OF NEGATIVE DECLARATION OR MITIGATED NEGATIVE DECLARATION. The City shall have a copy of the Notice of Intent to Adopt, the Negative Declaration or Mitigated Negative Declaration, and the Initial Study posted at the City's offices and shall make these documents available for public inspection. The Notice must be provided either twenty (20) or thirty (30) days prior to final adoption of the Negative Declaration or Mitigated Negative Declaration. The public review period for a Negative Declaration or Mitigated Negative Declaration prepared for a project subject to State Clearinghouse review must be circulated for at least as long as the review period established by the State Clearinghouse, usually no less than thirty (30) days. Under certain circumstances, a shortened review period of at least twenty (20) days may be approved by the State Clearinghouse as provided for in State CEQA Guidelines Section 15105. See the Shortened Review Request Form "P." The state review period will commence on the date the State Clearinghouse distributes the document to state agencies. The State Clearinghouse will distribute the document within three (3) days of receipt if the Negative Declaration or Mitigated Negative Declaration is deemed complete. The Notice must also be posted in the office of the Clerk in each county in which the project is located and must remain posted throughout the public review period. The County Clerk is required to post the Notice within twenty-four (24) hours of receiving it. Notice shall be provided as stated in Local Guidelines Section 6.04. In addition, Notice must be given by at least one of the following procedures: (a) Publication at least once in a newspaper of general circulation in the area affected by the proposed project. If more than one area will be affected, the notice shall be published in the newspaper of largest circulation from among the newspapers of general circulation in those areas; (b) Posting of notice on and off site in the area where the project is to be located; or 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-91 Local Guidelines for Implementing the California Environmental Quality Act (2019) NEGATIVE DECLARATION (c) Direct mailing to owners and occupants of property contiguous to the project, as shown on the latest equalized assessment roll. The City, when acting as Lead Agency, shall consider all comments received during the public review period for the Negative Declaration or Mitigated Negative Declaration. For a Negative Declaration or Mitigated Negative Declaration, the City is not required to respond in writing to comments it receives either during or after the public review period. However, the City may provide a written response to all comments if it will not delay action on the Negative Declaration or Mitigated Negative Declaration, since any comment received prior to final action on the Negative Declaration or Mitigated Negative Declaration can form the basis of a legal challenge. A written response that refutes the comment or adequately explains the City's action in light of the comment will assist the City in defending against a legal challenge. The City shall notify any public agency that comments on a Negative Declaration or Mitigated Negative Declaration of the public hearing or hearings, if any, on the project for which the Negative Declaration or Mitigated Negative Declaration was prepared. 6.11 SUBMISSION OF NEGATIVE DECLARATION OR MITIGATED NEGATIVE DECLARATION TO STATE CLEARINGHOUSE. A Negative Declaration or Mitigated Negative Declaration must be submitted to the State Clearinghouse for circulation in the following situations: (a) The Negative Declaration or Mitigated Negative Declaration is prepared by a Lead Agency that is a state agency; (b) The Negative Declaration or Mitigated Negative Declaration is prepared by a public agency where a state agency is a Responsible Agency, Trustee Agency, or otherwise has jurisdiction by law with respect to the project; or (c) The Negative Declaration or Mitigated Negative Declaration is for a project identified in State CEQA Guidelines Section 15206 as being of statewide, regional, or area -wide significance. State CEQA Guidelines Section 15206 identifies the following types of projects as being examples of projects of statewide, regional, or area -wide significance that require submission to the State Clearinghouse for circulation: (1) Projects that have the potential to cause significant environmental effects beyond the city or county where the project would be located, such as: (a) Residential development of more than 500 units; (b) Commercial projects employing more than 1,000 persons or covering more than 500,000 square feet of floor space; (c) Office building projects employing more than 1,000 persons or covering more than 250,000 square feet of floor space; (d) Hotel or motel development of more than 500 rooms; or (e) Industrial projects housing more than 1,000 persons, occupying more than 40 acres of land, or covering more than 650,000 square feet of floor area; 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-92 Local Guidelines for Implementing the California Environmental O ality Act (2019) NEGATIVE DECLARATION (2) Projects for the cancellation of a Williamson Act contract covering 100 or more acres; (3) Projects in one of the following Environmentally Sensitive Areas: (a) Lake Tahoe Basin; (b) Santa Monica Mountains Zone; (c) Sacramento -San Joaquin River Delta; (d) Suisun Marsh; (e) Coastal Zone, as defined by the California Coastal Act; (0 Areas within one -quarter mile of a river designated as wild and scenic; or (g) Areas within the jurisdiction of the San Francisco Bay Conservation and Development Commission; (4) Projects that would affect sensitive wildlife habitats or the habitats of any rare, threatened, or endangered species; (5) Projects that would interfere with water quality standards; and (6) Projects that would provide housing, jobs, or occupancy for 500 or more people within 10 miles of a nuclear power plant. A Negative Declaration or Mitigated Negative Declaration may also be submitted to the State Clearinghouse for circulation if a state agency has special expertise with regard to the environmental impacts involved. When the Negative Declaration or Mitigated Negative Declaration is submitted to the State Clearinghouse for review, the review period shall be at least thirty (30) days. The review period begins (day one) on the date that the State Clearinghouse distributes the Negative Declaration or Mitigated Negative Declaration to state agencies. The State Clearinghouse is required to distribute the Negative Declaration or Mitigated Negative Declaration to state agencies within three (3) working days from the date the State Clearinghouse receives the document, as long as the Negative Declaration or Mitigated Negative Declaration is complete when submitted to the State Clearinghouse. If the document submitted to the State Clearinghouse is not complete, the State Clearinghouse must notify the Lead Agency. The review period for the public and all other agencies may run concurrently with the state agency review period established by the State Clearinghouse, but the public review period cannot conclude before the state agency review period does. The review period for the public shall be at least as long as the review period established by the State Clearinghouse. When a Negative Declaration or Mitigated Negative Declaration is submitted to the State Clearinghouse, a Notice of Completion (Form "H") should be included. A sufficient number of copies of the documents must be sent to the State Clearinghouse for circulation. Staff should contact the State Clearinghouse to find out the correct number of printed copies required for circulation. In addition to the printed copies, a copy of the documents in electronic format shall be submitted on a diskette or by electronic mail transmission if available. 2019 City of Santa Ana Local Guidelines 6-10 ®Best Best & Krieger LLP 75D-93 Local Guidelines for Implementing the California Environmental Quality Act (2019) NEGATIVE DECLARATION Alternatively, the City may provide copies of draft environmental documents to the State Clearinghouse for state agency review in an electronic format. The document must be on a CD-ROM in a common file format such as Word or Acrobat. Lead Agencies must provide fifteen (15) copies of the CD-ROM to the State Clearinghouse along with a hard copy version of the Notice of Completion (Form "H"). In addition, each CD-ROM must be accompanied by 15 printed copies of the introduction section of a Negative Declaration or Mitigated Negative Declaration. (A Lead Agency may also use Form "Q".) The printed summary allows both the State Clearinghouse and agency CEQA coordinators to distribute the documents quickly without the use of a computer. Form "Q" may be used as a cover sheet. A shorter review period by the State Clearinghouse for a Negative Declaration or Mitigated Negative Declaration can be requested by the decision -making body. The shortened review period shall not be less than twenty (20) days. Such a request must be made in writing by the Lead Agency to the Office of Planning and Research . The decision -making body may designate by resolution or ordinance an individual authorized to request a shorter review period. (See Form "P"). Any approval of a shortened review period must be given prior to, and reflected in, the public notice. However, a shortened review period shall not be approved by the Office of Planning and Research for any proposed project of statewide, regional or area -wide environmental significance, as defined by State CEQA Guidelines Section 15206. 6.12 SPECIAL NOTICE REQUIREMENTS FOR WASTE- AND FUEL -BURNING PROJECTS. For any project that involves the burning of municipal waste, hazardous waste, or refuse - derived fuel (such as tires) and that does not require an EIR, as defined in Local Guidelines Section 5.11, a Notice of Intent to Adopt a Negative Declaration or Mitigated Negative Declaration shall be given to all organizations and individuals who have previously requested it and shall also be given by all three of the procedures listed in Local Guidelines Section 6.07. In addition, Notice shall be given by direct mailing to the owners and occupants of property within one -quarter mile of any parcel or parcels on which such a project is located. (Public Resources Code Section 21092(c).) These notice requirements apply only to those projects described in Local Guidelines Section 5.11. These notice requirements do not preclude the City from providing additional notice by other means if desired. 6.13 CONSULTATION WITH WATER AGENCIES REGARDING LARGE DEVELOPMENT PROJECTS. Under specific circumstances a city or county acting as Lead Agency must consult with the public water system that will supply the project to determine whether the public water system can adequately supply the water needed for the project. As a Responsible Agency, the City should be aware of these requirements. See Local Guidelines Section 5.16 for more information on these requirements. 6.14 CONTENT OF NEGATIVE DECLARATION OR MITIGATED NEGATIVE DECLARATION. A Negative Declaration must be prepared directly by or under contract to the City and should generally resemble Form "E." It shall contain the following information: 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-94 Local Guidelines for Implementing the California Environmental Ouality Act (2019) NEGATIVE DECLARATION (a) A brief description of the project proposed, including any commonly used name for the project; (b) The location of the project and the name of the project proponent; (c) A finding that the project as proposed will not have a significant effect on the environment; and (d) An attached copy of the Initial Study documenting reasons to support the finding. For a Mitigated Negative Declaration, feasible mitigation measures included in the project to substantially lessen or avoid potentially significant effects must be fully enforceable through permit conditions, agreements, or other measures. Such permit conditions, agreements, and measures must be consistent with applicable constitutional requirements such as the "nexus" and "rough proportionality" standards established by case law. The proposed Negative Declaration or Mitigated Negative Declaration must reflect the independent judgment of the City. 6.15 TYPES OF MITIGATION. The following is a non -exhaustive list of potential types of mitigation the City may consider: (a) Avoidance; (b) Preservation; (c) Rehabilitation or replacement. Replacement may be on -site or off -site depending on the particular circumstances; and/or (d) Participation in a fee program. 6.16 ADOPTION OF NEGATIVE DECLARATION OR MITIGATED NEGATIVE DECLARATION. Following the publication, posting or mailing of the Notice of Intent to Adopt a Negative Declaration or Mitigated Negative Declaration, but not before the expiration of the applicable twenty (20) or thirty (30) day public review period, the Negative Declaration or Mitigated Negative Declaration may be presented to the decision -making body at a regular or special meeting. Prior to adoption, the City shall independently review and analyze the Negative Declaration or Mitigated Negative Declaration and find that the Negative Declaration or Mitigated Negative Declaration reflects the independent judgment of the City. If new information is added to the Negative Declaration or Mitigated Negative Declaration after public review, the City should determine whether recirculation is warranted. (See Local Guidelines Section 6.19). If the decision -making body finds that the project will not have a significant effect on the environment, it shall adopt the Negative Declaration or Mitigated Negative Declaration. If the decision -making body finds that the proposed project may have a significant effect on the environment that cannot be mitigated or avoided, it shall order the preparation of a Draft EIR and the filing of a Notice of Preparation of a Draft EIR. When adopting a Negative Declaration or Mitigated Negative Declaration, the City shall specify the location and custodian of the documents or other material that constitute the record of proceedings upon which it based its decision. If adopting a Negative Declaration for a project 2019 City of Santa Ana Local Guidelines 6-12 ®Best Best & Krieger LLP 75D-95 Local Guidelines for Implementing the California Environmental Quality Act (2019) NEGATIVE DECLARATION that may emit hazardous air emissions within one -quarter mile of a school and that meets the other requirements of Local Guidelines Section 6.06, the decision -making body must also make the findings required by Local Guidelines Section 6.06. As Lead Agency, the City may charge a non -elected official or body with the responsibility of independently reviewing the adequacy of and adopting a Negative Declaration or a Mitigated Negative Declaration; however, when a non -elected decision -making body adopts a Negative Declaration or Mitigated Negative Declaration, the City must have a procedure allowing for the appeal of that decision to the City Council. 6.17 MITIGATION REPORTING OR MONITORING PROGRAM FOR MITIGATED NEGATIVE DECLARATION. When adopting a Mitigated Negative Declaration pursuant to Local Guidelines Section 6.13, the City shall adopt a reporting or monitoring program to assure that mitigation measures, which are required to mitigate or avoid significant effects on the environment, will be fully enforceable through permit conditions, agreements, or other measures and implemented by the project proponent or other responsible party in a timely manner, in accordance with conditions of project approval. The City shall also specify the location and the custodian of the documents that constitute the record of proceedings upon which it based its decision. There is no requirement that the reporting or monitoring program be circulated for public review; however, the City may choose to circulate it for public comments along with the Mitigated Negative Declaration. The mitigation measures required to mitigate or avoid significant effects on the environment must be adopted as conditions of project approval. This reporting or monitoring program shall be designed to assure compliance during the implementation or construction of a project and shall otherwise comply with the requirements described in Local Guidelines Section 7.38. If a Responsible Agency or Trustee Agency has required that certain conditions be incorporated into the project, the City may request that agency to prepare and submit a proposed reporting or monitoring program. The City shall also require that, prior to the close of the public review period for a Mitigated Negative Declaration (see Local Guidelines Section 6.04), the Responsible or Trustee Agency submit detailed performance objectives for mitigation measures, or refer the City to appropriate, readily available guidelines or reference documents. Any mitigation measures submitted to the City by a Responsible or Trustee Agency shall be limited to measures that mitigate impacts to resources that are within the Responsible or Trustee Agency's authority. Local agencies have the authority to levy fees sufficient to pay for this program. Therefore, the City can charge the project proponent a fee to cover actual costs of program processing and implementation. Transportation information resulting from the reporting or monitoring program required to be adopted by the City shall be submitted to the regional transportation planning agency where the project is located and to the Department of Transportation for a project of statewide, regional or area -wide significance according to State CEQA Guidelines Section 15206. The transportation planning agency and the Department of Transportation are required by law to 2019 City of Santa Ana Local Guidelines 6-13 ®Best Best & Krieger LLP 75D-96 Local Guidelines for Implementing the California Environmental Ouality Act (2019) NEGATIVE DECLARATION adopt guidelines for the submittal of these reporting or monitoring programs, so the City may wish to tailor its submittal to such guidelines. 6.18 APPROVAL OR DISAPPROVAL OF PROJECT. At the time of adoption of a Negative Declaration or Mitigated Negative Declaration, the decision -making body may consider the project for purposes of approval or disapproval. Prior to approving the project, the decision -making body shall consider the Negative Declaration or Mitigated Negative Declaration, together with any written comments received and considered during the public review period, and shall approve or disapprove the Negative Declaration or Mitigated Negative Declaration. In making a finding as to whether there is any substantial evidence that the project will have a significant effect on the environment, the factors listed in Local Guidelines Section 5.08 should be considered. (See Local Guidelines Section 6.06 for approval requirements for facilities that may emit hazardous pollutants or that may handle extremely hazardous substances within one -quarter mile of a school site.) 6.19 RECIRCULATION OF A NEGATIVE DECLARATION OR MITIGATED NEGATIVE DECLARATION. A Negative Declaration or Mitigated Negative Declaration must be recirculated when the document must be substantially revised after the public review period but prior to its adoption. A "substantial revision" occurs when the City has identified a new and avoidable significant effect for which mitigation measures or project revisions must be added in order to reduce the effect to a level of insignificance, or when the City determines that the proposed mitigation measures or project revisions will not reduce the potential effects to less than significant and new measures or revisions must be required. Recirculation is not required under the following circumstances: (a) Mitigation measures are replaced with equal or more effective measures, and the City makes a finding to that effect; (b) New project revisions are added after circulation of the Negative Declaration or Mitigated Negative Declaration or in response to written or oral comments on the project's effects, but the revisions do not create new significant environmental effects and are not necessary to mitigate an avoidable significant effect; (c) Measures or conditions of project approval are added after circulation of the Negative Declaration or Mitigated Negative Declaration, but the measures or conditions are not required by CEQA, do not create new significant environmental effects, and are not necessary to mitigate an avoidable significant effect; or (d) New information is added to the Negative Declaration or Mitigated Declaration which merely clarifies, amplifies, or makes insignificant modifications to the Negative Declaration or Mitigated Negative Declaration. If, after preparation of a Negative Declaration or Mitigated Negative Declaration, the City determines that the project requires an EIR, it shall prepare and circulate the Draft EIR for consultation and review and advise reviewers in writing that a proposed Negative Declaration or Mitigated Declaration had previously been circulated for the project. 2019 City of Santa Ana Local Guidelines 6-14 ®Best Best & Krieger LLP 75D-97 Local Guidelines for Implementing the California Environmental Quality Act (2019) NEGATIVE DECLARATION 6.20 NOTICE OF DETERMINATION ON A PROJECT FOR WHICH A PROPOSED NEGATIVE OR MITIGATED NEGATIVE DECLARATION HAS BEEN APPROVED. After final approval of a project for which a Negative Declaration or Mitigated Negative Declaration has been prepared, Staff shall cause to be prepared, filed, and posted a Notice of Determination (Form "F"). The Notice of Determination shall contain the following information: (a) An identification of the project, including the project title as identified on the proposed Negative Declaration or Mitigated Negative Declaration, location, and the State Clearinghouse identification number for the proposed Negative Declaration or Mitigated Negative Declaration if the Notice of Determination is filed with the State Clearinghouse; (b) For private projects, identification of the person undertaking a project that is supported, in whole or in part, through contracts, grants, subsidies, loans, or other forms of assistance from one or more public agencies or the identity of the person receiving a lease, permit, license, certificate, or other entitlement for use from one or more public agencies; (c) A brief description of the project; (d) The name of the City and the date on which the City approved the project; (e) The determination of the City that the project will not have a significant effect on the environment; (f) A statement that a Negative Declaration or Mitigated Negative Declaration was adopted pursuant to the provisions of CEQA; (g) A statement indicating whether mitigation measures were made a condition of the approval of the project, and whether a mitigation monitoring plan/program was adopted; and (h) The address where a copy of the Negative Declaration or Mitigated Negative Declaration may be examined. The Notice of Determination shall be filed with the Clerk of each county in which the project will be located within five (5) working days of project approval. The City is encouraged to make copies of filed notices available in electronic format on the Internet. Such electronic notices are in addition to the posting requirements of the State CEQA Guidelines and the Public Resources Code. The Clerk must post the Notice of Determination within twenty-four (24) hours of receipt. The Notice must be posted in the office of the Clerk for a minimum of thirty (30) days. Thereafter, the Clerk shall return the notice to the City with a notation of the period it was posted. The City shall retain the notice for not less than twelve (12) months. If the project requires discretionary approval from any State agency, the Notice of Determination shall also be filed with OPR within five (5) working days of project approval along with proof of payment of the DFW fee or a no effect determination form from the DFW (see Local Guidelines Section 6.24). Simultaneously with the filing of the Notice of Determination with the Clerk, Staff shall cause a copy of the Notice of Determination to be posted at City Offices. If a written request has been made for a copy of the Notice prior to the date on which the City adopts the Negative Declaration or Mitigated Negative Declaration, the copy must be 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-98 Local Guidelines for hnplementing the California Environmental Quality Act (2019) NEGATIVE DECLARATION mailed, first class postage prepaid, within five (5) days of the City's determination. If such a request is made following the City's determination, then the copy should be mailed in the same manner as soon as possible. The recipients of such documents may be charged a fee reasonably related to the cost of providing the service. For projects with more than one phase, Staff shall file a Notice of Determination for each phase requiring a discretionary approval. The filing and posting of the Notice of Determination with the County Clerk, and, if necessary, with OPR, usually starts a thirty (30) day statute of limitations on court challenges to the approval under CEQA. When separate notices are filed for successive phases of the same overall project, the thirty (30) day statute of limitations to challenge the subsequent phase begins to run when the second notice is filed. Failure to file the Notice may result in a one hundred eighty (180) day statute of limitations. 6.21 ADDENDUM TO NEGATIVE DECLARATION OR MITIGATED NEGATIVE DECLARATION. The City may prepare an addendum to an adopted Negative Declaration or Mitigated Negative Declaration if only minor technical changes or additions are necessary. The City may also prepare an addendum to an adopted Negative Declaration or Mitigated Negative Declaration when none of the conditions calling for a subsequent Negative Declaration or Mitigated Negative Declaration have occurred. (See Local Guidelines Section 6.22 below.) An addendum need not be circulated for public review but can be attached to the adopted Negative Declaration or Mitigated Negative Declaration. The City shall consider the addendum with the adopted Negative Declaration or Mitigated Negative Declaration prior to project approval. 6.22 SUBSEQUENT NEGATIVE DECLARATION OR MITIGATED NEGATIVE DECLARATION. When a Negative Declaration or Mitigated Negative Declaration has been adopted for a project, or when an EIR has been certified, no subsequent Negative Declaration, Mitigated Negative Declaration, or EIR shall be prepared for that project unless the Lead Agency determines, on the basis of substantial evidence in the light of the whole record, one or more of the following: (a) Substantial changes are proposed in the project which will require major revisions of the previous EIR, Negative Declaration, or Mitigated Negative Declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; or (b) Substantial changes occur with respect to the circumstances under which the project is undertaken which will require major revisions of the previous EIR, Negative Declaration, or Mitigated Negative Declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; or (c) New information of substantial importance which was not known and could not have been known with the exercise of reasonable diligence at the time the previous EIR was certified or the Negative Declaration was adopted which shows any of the following: 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-99 Local Guidelines for Implementing the California Environmental Quality Act (2019) NEGATIVE DECLARATION (1) The project will have one or more significant effects not discussed in the previous EIR or Negative Declaration; (2) Significant effects previously examined will be substantially more severe than shown in the previous EIR; (3) Mitigation measure(s) or altemative(s) previously found not to be feasible would in fact be feasible and would substantially reduce one or more significant effects of the project, but the project proponents declined to adopt the mitigation measure(s) or altemative(s); or (4) Mitigation measure(s) or altemative(s) which are considerably different from those analyzed in the previous EIR would substantially reduce one or more significant effects on the environment, but the project proponents decline to adopt the mitigation measure(s) or altemative(s). The City, as Lead Agency, would then determine whether a Subsequent EIR, Supplemental EIR, Subsequent Negative Declaration, Subsequent Mitigated Negative Declaration, or Addendum would be applicable. Subsequent Negative Declarations and Mitigated Negative Declarations must be given the same notice and public review period as other Negative Declarations. The Subsequent Negative Declaration shall state where the previous document is available and can be reviewed. 6.23 PRIVATE PROJECT COSTS. For private projects, the person or entity proposing to carry out the project shall bear all costs incurred by the City in preparing the Initial Study and in preparing and filing the Negative Declaration or Mitigated Negative Declaration and Notice of Determination. 6.24 FILING FEES FOR PROJECTS THAT AFFECT WILDLIFE RESOURCES. At the time a Notice of Determination for a Negative Declaration or Mitigated Negative Declaration is filed with the County or Counties in which the project is located, a fee of $2,354.75, or the then applicable fee, shall be paid to the Clerk for projects that will adversely affect fish or wildlife resources. These fees are collected by the Clerk on behalf of DFW pursuant to Fish and Game Code Section 711.4. Only one filing fee is required for each project unless the project is tiered or phased and separate environmental documents are prepared. (Fish & Game Code Section 711.4(g).) For projects where Responsible Agencies file separate Notices of Determination, only the Lead Agency is required to pay the fee. Note: County Clerks are authorized to charge a documentary handling fee for each project in addition to the Fish and Game Code fees specified above. Refer to the Index in the Staff Summary to help determine the correct total amount of fees applicable to the project. For private projects, the City may pass these costs on to the project applicant. 2019 City of Santa Ana Local Guidelines 6-17 ®Best Best & Krieger LLP 75D-100 Local Guidelines for Implementing the California Environmental O ality Act (2019) NEGATIVE DECLARATION Fish and Game Code fees may be waived for projects with "no effect" on fish or wildlife resources or for certain projects undertaken by the DFW and implemented through a contract with a non-profit entity or local government agency; however, the Lead Agency must obtain a form showing that the DFW has determined that the project will have "no effect" on fish and wildlife. (Fish and Game Code Section 711.4(c)(2)(A)). Projects that are statutorily or categorically exempt from CEQA are also not subject to the filing fee, and do not require a no effect determination. (State CEQA Guidelines Sections 15260 through 15333; Fish and Game Code Section 711.4(d)(1)). The applicable DFW Regional Office's environmental review and permitting staff are responsible for determining whether a project within their region will qualify for a no effect determination and if the CEQA filing fee will be waived. The request should be submitted when the CEQA document is released for public review, or as early as possible in the public comment period. Documents submitted in digital format are preferred (e.g. compact disk). If insufficient documentation is submitted to DFW for the proposed project, a no effect determination will not be issued. If the City believes that a project for which it is Lead Agency will have "no effect" on fish or wildlife resources, it should contact the appropriate DFW Regional Office. The project's CEQA document may need to be provided to the appropriate DFW Regional Office along with a written request. Documentation submitted to the appropriate DFW Regional Office should set forth facts in support of the fee exemption. Previous examples of projects that have qualified for a fee exemption include: minor zoning changes that did not lead to or allow new construction, grading, or other physical alterations to the environment; and minor modifications to existing structures, including addition of a second story to single or multi -family residences. The fee exemption requirement that the project have "no" impact on fish or wildlife resources is more stringent than the former requirement that a project have only "de minimis" effects on fish or wildlife resources. DFW may determine that a project would have no effect on fish and wildlife if all of the following conditions apply: • The project would not result in or have the potential to result in harm, harassment, or take of any fish and/or wildlife species. • The project would not result in or have the potential to result in direct or indirect destruction, ground disturbance, or other modification of any habitat that may support fish and/or wildlife species. • The project would not result in or have the potential to result in the removal of vegetation with potential to support wildlife. • The project would not result in or have the potential to result in noise, vibration, dust, light, pollution, or an alteration in water quality that may affect fish and/or wildlife directly or from a distance. • The project would not result in or have the potential to result in any interference with the movement of any fish and/or wildlife species. Any request for a fee exemption should include the following information: 2019 City of Santa Ana Local Guidelines 6-18 ®Best Best & Krieger LLP 75D-101 Local Guidelines for Implementing the California Environmental Ouality Act (2019) NEGATIVE DECLARATION (1) the name and address of the project proponent and applicant contact information; (2) a brief description of the project and its location; (3) site description and aerial and/or topographic map of the project site; (4) State Clearinghouse number or county filing number; (5) a statement that an Initial Study has been prepared by the City to evaluate the project's effects on fish and wildlife resources, if any; and (6) a declaration that, based on the City's evaluation of potential adverse effects on fish and wildlife resources, the City believes the project will have no effect on fish or wildlife. If insufficient documentation is submitted to DFW for the proposed project, a no effect determination will not be issued. (A sample Request for Fee Exemption is attached as Form "U.) DFW will review the City's finding, and if DFW agrees with the City's conclusions, DFW will provide the City with written confirmation. Retain DFW's determination as part of the administrative record; the City is required to file a copy of this determination with the County after project approval and at the time of filing of the Notice of Determination. The Lead Agency must have written confirmation of DFW's finding of "no impact" at the time the Lead Agency files its Notice of Determination with the County. The County cannot accept the Notice of Determination unless it is accompanied by the appropriate fee or a written no effect determination from DFW. 2019 City of Santa Ana Local Guidelines 6-19 ®Best Best & Krieger LLP 75D-102 Local Guidelines for Implementing the California Environmental Quality Act (2019) ENVIRONMENTAL IMPACT REPORT ENVIRONMENTAL IMPACT REPORT 7.01 DECISION TO PREPARE AN EIR. An EIR shall be prepared whenever there is substantial evidence in light of the whole record which supports a fair argument that the project may have a significant effect on the environment. (See Local Guidelines Sections 11.65 and 11.71.) The record may include the Initial Study or other documents or studies prepared to assess the project's environmental impacts. 7.02 CONTRACTING FOR PREPARATION OF EIRS. If an EIR is prepared under a contract with the City, the contract must be executed within forty-five (45) days from the date on which the City sends a Notice of Preparation. The City may take longer to execute the contract if the project applicant and the City mutually agree to an extension of the 45-day time limit. The EIR prepared under contract must be the City's product. Staff, together with such consultant help as may be required, shall independently review and analyze the EIR to verify its accuracy, objectivity and completeness prior to presenting it to the decision -making body. The EIR made available for public review must reflect the independent judgment of the City. Staff may require such information and data from the person or entity proposing to carry out the project as Staff deems necessary for completion of the EIR. 7.03 NOTICE OF PREPARATION OF DRAFT EIR. After determining that an EIR will be required for a proposed project, the Lead Agency shall prepare and send a Notice of Preparation (Form "G") to CPR and to each of the following: (a) Each Responsible Agency and Trustee Agency involved with the project; (b) Any other federal, state, or local agency which has jurisdiction by law or exercises authority over resources affected by the project, including: (1) Any water supply agency consulted under Local Guidelines Section 5.16; (2) Any city or county bordering on the project area; (3) For a project of statewide, regional, or area -wide significance, to any transportation agencies or public agencies which have major local arterials or public transit facilities within five (5) miles of the project site or freeways, highways, or rail transit service within ten (10) miles of the project site which could be affected by the project; and (4) For a subdivision project located within one mile of a facility of the State Water Resources Development System, the California Department of Water Resources; (c) The last known name and address of all organizations and individuals who have previously filed a written request with the City to receive these Notices; 2019 City of Santa Ana Local Guidelines 7-1 ©Best Best & Krieger LLP 75D-103 Local Guidelines for Implementing the California Environmental Ouality Act (2019) ENVIRONMENTAL rMPACT REPORT (d) For certain projects that may impact a low-level flight path, military impact zone, or special use airspace and that meet the other criteria in Local Guidelines Section 7.04, the specified military services contact; (e) For certain projects that involve the construction or alteration of a facility anticipated to emit hazardous air emissions or handle hazardous substances within one -quarter mile of a school and that meet the other requirements of Local Guidelines Section 7.36, any potentially affected school district; (f) For certain waste -burning projects that meet the requirements of Local Guidelines Section 5.11 (See also Local Guidelines Section 7.27), the owners and occupants of property within one-fourth mile of any parcel on which the project will be located; and (g) For a project that establishes or amends a redevelopment plan that contains land in agricultural use, the agricultural and farm agencies and organizations specified in Health and Safety Code Section 33333.3. Additionally, for a project of statewide, regional, or area -wide significance, the Lead Agency should also consult with public transit agencies with facilities within one-half mile of the proposed project. The Notice of Preparation must also be filed and posted in the office of the Clerk in each county in which the project is located for thirty (30) days. The County Clerk must post the Notice within twenty-four (24) hours of receipt. When submitting the Notice of Preparation to OPR, a Notice of Completion (Form "H") should be used as a cover sheet. Responsible and Trustee Agencies, the State Clearinghouse, and the state agencies contacted by the State Clearinghouse have thirty (30) days to respond to the Notice of Preparation. Agencies that do not respond within thirty (30) days shall be deemed not to have any comments on the Notice of Preparation. The Lead Agency shall send copies of the Notice of Preparation by certified mail or any other method of transmittal which provides it with a record that the Notice was received. At a minimum, the Notice of Preparation shall include: (a) A description of the project; (b) The location of the project indicated either on an attached map (preferably a copy of the USGS 15' or 7%' topographical map identified by quadrangle name) or by a street address and cross street in an urbanized area; (c) The probable environmental effects of the project; (d) The name and address of the consulting firm retained to prepare the Draft EIR, if applicable; and (e) The Environmental Protection Agency ("EPA") list on which the proposed site is located, if applicable, and the corresponding information from the applicant's statement. (See Local Guidelines Section 2.04.) 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-104 Local Guidelines for Implementing the California Environmental Quality Act (2019) ENVIRONMENTAL IMPACT REPORT 7.04 SPECIAL NOTICE REQUIREMENTS FOR AFFECTED MILITARY AGENCIES CEQA imposes additional requirements to provide notice to potentially affected military agencies when: (a) A "military service" (defined in Section 11.42 of these Local Guidelines) has provided the City with its contact office and address and notified the City of the specific boundaries of a "low-level flight path" (defined in Section 11.37 of these Local Guidelines), "military impact zone" (defined in Section 11.41 of these Local Guidelines), or "special use airspace" (defined in Section 11.67 of these Local Guidelines); and (b) The project meets one of the following criteria: (1) The project is within the boundaries specified pursuant to subsection (a) of this guideline; (2) The project includes a general plan amendment; (3) The project is of statewide, regional, or area -wide significance; or (4) The project relates to a public use airport or certain lands surrounding a public use airport. When a project meets these requirements, the City must provide the military service's designated contact with any Notice of Preparation, and/or Notice of Availability of Draft EIRs that have been prepared for a project, unless the project involves the remediation of lands contaminated with hazardous wastes and meets certain other requirements. (See Public Resources Code Sections 21080.4 and 21092 and Health and Safety Code Sections 25300, et seq.; 25396; and 25187.) The City must provide the military service with sufficient notice of its intent to certify an EIR to ensure that the military service has no fewer than thirty (30) days to review the document; or forty-five (45) days to review the environmental documents before they are approved if the documents have been submitted to the State Clearinghouse. It should be noted that the effect, or potential effect, a project may have on military activities does not itself constitute an adverse effect on the environment pursuant to CEQA. 7.05 ENVIRONMENTAL LEADERSHIP DEVELOPMENT PROJECT. Under certain circumstances, a project applicant may choose to apply to the Governor of the State of California to have the project certified as an Environmental Leadership Development Project. Only large, privately funded projects that will result in a minimum investment of $100 million in California upon completion of construction and that create high -wage, highly skilled jobs without resulting in any net additional emission of greenhouse gases, will qualify for certification. All construction workers employed in the execution of the project will receive at least the general prevailing rate of per diem wages for the type of work and geographic area, as determined by the Director of Industrial Relations pursuant to Labor Code Sections 1773 and 1773.9. If the project is certified for streamlining, the project applicant shall include this 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-105 Local Guidelines for Implementing the California Environmental Quality Act (2019) ENVIRONMENTAL IMPACT REPORT requirement in all contracts for the performance of the work. The request for certification must be made and granted prior to the release of the Draft EIR. If the Governor certifies the project, the lead agency must make the administrative record available concurrently with the Draft EIR and certify the administrative record within five (5) days of project approval and must make it available in an electronic format. Within 10 days of the Governor certifying an Environmental Leadership Development Project, the Lead Agency shall, at the applicant's expense, issue a public notice. See Public Resources Code Section 21187 for the language to be used in the public notice. If litigation is filed against such a project, certain fast -tracked litigation procedures will apply. Please see Public Resources Code Section 21178 and Sections 21183 through 21187 for a complete description of the requirements for such projects. 7.06 PREPARATION OF DRAFT EIR. The Lead Agency is responsible for preparing a Draft EIR. The Lead Agency may begin preparation of the Draft EIR without awaiting responses to the Notice of Preparation. However, information communicated to the Lead Agency not later than thirty (30) days after receipt of the Notice of Preparation shall be included in the Draft EIR. 7.07 CONSULTATION WITH CALIFORNIA NATIVE AMERICAN TRIBES. Prior to the release of a Draft EIR for a project, the Lead Agency shall begin consultation with a California Native American tribe that is traditionally and culturally affiliated with the geographic area of the proposed project if: (a) The California Native American tribe requested to the Lead Agency, in writing, to be informed by the Lead Agency through formal notification of proposed projects in the geographic area that is traditionally and culturally affiliated with the tribe; and (b) The California Native American tribe responds, in writing, within 30 days of receipt of the formal notification, and requests the consultation. The California Native American tribe shall designate a lead contact person when responding to the Lead Agency. If a lead contact is not designated by the California Native American tribe, or if it designates multiple lead contact people, the Lead Agency shall defer to the individuals listed on the contact list maintained by the Native American Heritage Commission. Consultation is defined in Local Guidelines Section 11.12. To expedite the requirements of this section, the Native American Heritage Commission shall assist the Lead Agency in identifying the California American Native tribes that are traditionally and culturally affiliated with the project area. Within 14 days of determining that an application for a project is complete or a decision by a public agency to undertake a project, the Lead Agency shall provide formal notification to the designated contact of, or a trial representative of, traditionally and culturally affiliated California Native America tribes that have requested notice, which shall be accomplished by at least one written notification that includes a brief description of the proposed project and its 2019 City of Santa Ana Local Guidelines 7-4 ®Best Best & Krieger LLP 75D-106 Local Guidelines for Implementing the California Environmental Gustily Act (2019) ENVIRONMENTAL IMPACT REPORT location, the Lead Agency contact information, and a notification that the California Native American tribe has 30 days to request consultation. The Lead Agency shall begin the consultation process within 30 days of receiving a California Native American tribe's request for consultation. If consultation is requested, the parties may propose mitigation measures, including those set forth in Public Resources Code Section 21084.3, capable of avoiding or substantially lessening potential significant impacts to a tribal cultural resource or alternatives that would avoid significant impacts to a tribal cultural resource. The consultation may include discussion concerning the type of environmental review necessary, the significance of tribal cultural resources, the significance of the project's impacts on the tribal cultural resources, and, if necessary, project alternatives or the appropriate measures for preservation or mitigation that the California Native American tribe may recommend to the lead agency. The consultation shall be considered concluded when either of the following occurs: (1) The parties agree to measures to mitigate or avoid a significant effect, if a significant effect exists, on a tribal cultural resource. (2) A party, acting in good faith and after reasonable effort, concludes that mutual agreement cannot be reached. The California Native American tribe is not limited in its ability to submit information to the Lead Agency regarding the significance of the tribal cultural resources, the significance of the project's impact on tribal cultural resources, or any appropriate measures to mitigate the impacts. Additionally, the Lead Agency or project proponent is not limited in its ability to incorporate changes and additions to the project as a result of the consultation, even if not legally required. 7.08 IDENTIFICATION OF TRIBAL CULTURAL RESOURCES AND PROCESSING OF INFORMATION AFTER CONSULTATION WITH THE CALIFORNIA NATIVE AMERICAN TRIBE After consultation with the California Native American tribe listed above in Local Guidelines Section 7.07, any mitigation measures agreed upon in the consultation conducted pursuant to Public Resources Code section 21080.3.2 shall be recommended for inclusion in the EIR and in an adopted mitigation monitoring and reporting program, if the mitigation measures are determined to avoid or lessen the proposed project's impacts on tribal cultural resources, and if the mitigation measures are enforceable. If a project may have a significant impact on a tribal cultural resource, the Lead Agency's EIR shall discuss both of the following: (a) Whether the proposed project has a significant impact on an identified tribal cultural resource; 2019 City of Santa Ana Local Guidelines Most Best & Krieger LLP 75D-107 Local Guidelines for Implementing the California Environmental Ouality Act (2019) ENVIRONMENTAL IMPACT REPORT (b) Whether feasible alternatives or mitigation measures, including those measures that may be agreed to during the consultation, avoid or substantially lessen the impact on the identified tribal cultural resource. Any information provided regarding the location, description and use of the tribal cultural resource that is submitted by a California Native American tribe during the environmental review process shall not be included in the EIR or otherwise disclosed by the lead agency or any other public agency to the public, consistent with Governmental Code Sections 6254(r) and 6254.10, and State CEQA Guidelines 15120(d), without the prior consent of the tribe that provided the information. If the Lead Agency publishes any information submitted by a California Native American tribe during the consultation or environmental review process, that information shall be published in a confidential appendix to the EIR unless the tribe provides consent, in writing, to the disclosure of some or all of the information to the public. This does not prohibit the confidential exchange of the submitted information between public agencies that have lawful jurisdiction over the preparation of the EIR. The exchange of confidential information regarding tribal cultural resources submitted by a California Native American tribe during the consultation or environmental review process among the Lead Agency, the California Native American tribe, the project applicant, or the project applicant's agent is not prohibited by Public Resources Code Section 21082.3. The project applicant and the project applicant's legal advisers must use a reasonable degree of care and maintain the confidentiality of the information exchanged for the purposes of preventing looting, vandalism, or damage to tribal cultural resources and shall not disclose to a third party confidential information regarding the cultural resource unless the California Native American tribe providing the information consents in writing to the public disclosure of such information. Public Resources Code Section 21082.3 does not prevent a Lead Agency or other public agency from describing the information in general terms in the EIR so as to inform the public of the basis of the Lead Agency's or other public agency's decision without breaching the confidentiality required. hi addition, a Lead Agency may certify an EIR for a project with a significant impact on an identified tribal cultural resource only if one of the following occurs: (a) The consultation process between the California Native American tribe and the Lead Agency has occurred as provided in Public Resources Code Sections 21080.3.1 and 21080.3.2 and concluded pursuant to subdivision (b) of Section 21080.3.2. (b) The California Native American tribe has requested consultation pursuant to Public Resources Code Section 21080.3.1 and has failed to provide comments to the Lead Agency, or otherwise failed to engage, in the consultation process. (c) The Lead Agency has complied with subdivision (d) of Section 21080.3.1 of the Public Resources Code and the California Native American tribe has failed to request consultation within 30 days. If substantial evidence demonstrates that a project will cause a significant effect to a tribal cultural resource but the decision -makers do not include the mitigation measures 2019 City of Santa Ana Local Guidelines 1-6 ®Best Best & Krieger LLP 75D-108 Local Guidelines for Implementing the California Environmental Ouality Act (2019) ENVIRONMENTAL IMPACT REPORT recommended by the staff in the Draft EIR, or if there are no agreed upon mitigation measures at the conclusion of the consultation, or if no consultation has occurred, the Lead Agency must still consider the adoption of feasible mitigation. 7.09 SIGNIFICANT ADVERSE IMPACTS TO TRIBAL CULTURAL RESOURCES Public agencies shall, when feasible, avoid damaging effects to any tribal cultural resource. If the Lead Agency determines that a project may cause a substantial adverse change to a tribal cultural resource, and measures are not otherwise identified in the consultation process provided in Public Resources Code section 21080.3.2 as set forth in Local Guidelines Section 7.07, the following examples of mitigation measures, if feasible, may be considered to avoid or minimize the significant adverse impacts: (a) Avoidance and preservation of the resources in place, including, but not limited to, planning and construction to avoid the resources and protect the cultural and natural context, or planning greenspace, parks, or other open space, to incorporate the resources with culturally appropriate protection and management criteria. (b) Treating the resource with culturally appropriate dignity taking into account the tribal cultural values and meaning of the resource, including, but not limited to the following: (1) Protecting the cultural character and integrity of the resource. (2) Protecting the traditional use of the resource. (3) Protecting the confidentiality of the resource. (c) Permanent conservation easements or other interests in real property, with culturally appropriate management criteria for the purposes of preserving or utilizing the resources or places. (d) Protecting the resource. 7.10 CONSULTATION WITH OTHER AGENCIES AND PERSONS. To expedite consultation in response to the Notice of Preparation, the Lead Agency, a Responsible Agency, or a project applicant may request a meeting among the agencies involved to assist in determining the scope and content of the environmental information that the involved agencies may require. For any project that may affect highways or other facilities under the jurisdiction of the State Department of Transportation, the Department of Transportation can request a scoping meeting. When acting as Lead Agency, the City must convene the meeting as soon as possible but no later than thirty (30) days after a request is made. When acting as a Responsible Agency, the City should make any requests for consultation as soon as possible after receiving a Notice of Preparation. Prior to completion of the Draft EIR, the Lead Agency shall consult with each Responsible Agency and any public agency that has jurisdiction by law over the project. 2019 City of Santa Ana Local Guidelines 7-7 CBest Best & Krieger LLP 75D-109 Local Guidelines for Implementing the California Environmental OualiN Act (2019) ENVIRONMENTAL IMPACT REPORT When acting as a Lead Agency, the City may fulfill this obligation by distributing the Notice of Preparation in compliance with Local Guidelines Section 7.03 and soliciting the comments of Responsible Agencies, Trustee Agencies, and other affected agencies. The City may also consult with any individual who has special expertise with respect to any environmental impacts involved with a project. The City may also consult directly with any person or organization it believes will be concerned with the environmental effects of the project, including any interested individuals and organizations of which the City is reasonably aware. The purpose of this consultation is to "scope" the EIR's range of analysis. When a Negative Declaration or Mitigated Negative Declaration will be prepared for a project, no scoping meeting need be held, although the City may hold one if it so chooses. For private projects, the City as Lead Agency may charge and collect from the applicant a fee not to exceed the actual cost of the consultations. In addition to soliciting comments on the Notice of Preparation, the Lead Agency may be required to conduct a scoping meeting to gather additional input regarding the impacts to be analyzed in the EIR. The Lead Agency is required to conduct a scoping meeting when: (a) The meeting is requested by a Responsible Agency, a Trustee Agency, OPR, or a project applicant; (b) The project is one of "statewide, regional or area wide significance" as defined in State CEQA Guidelines Section 15206; or (c) The project may affect highways or other facilities under the jurisdiction of the State Department of Transportation, and the Department of Transportation has requested a scoping meeting. When acting as Lead Agency, the City shall provide notice of the scoping meeting to all of the following: (a) Any county or city that borders on a county or city within which the project is located, unless the City has a specific agreement to the contrary with that county or city; (b) Any Responsible Agency; (c) Any public agency that has jurisdiction by law over the project; (d) A transportation planning agency, or any public agency that has transportation facilities within its jurisdiction, that could be affected by the project; and (e) Any organization or individual who has filed a written request for the notice. The requirement for providing notice of a scoping meeting may be met by including the notice of the public scoping meeting in the public meeting notice. Government Code Section 65352 requires that before a legislative body may adopt or substantially amend a general plan, the planning agency must refer the proposed action to any city or county, within or abutting the area covered by the proposal, and any special district that may be significantly affected by the proposed action. CEQA allows that referral procedure to be conducted concurrently with the scoping meeting required pursuant to this section of the Local CEQA Guidelines. 2019 City of Santa Ana Local Guidelines 7-8 ®Best Best & Krieger LLP 75D-110 Local Guidelines for Implementing the California En iron rental Quality Act (2019) ENVIRONMENTAL IMPACT REPORT For projects that are also subject to NEPA, a scoping meeting held pursuant to NEPA satisfies the CEQA scoping requirement as long as notice is provided to the agencies and individuals listed above, and in accordance with these Local Guidelines. (See Local Guideline 5.04 for a discussion of NEPA.) The City shall call the scoping meeting as soon as possible but not later than 30 days after the meeting was requested. If the scoping meeting is being conducted concurrently with the procedure in Government Code Section 65352 for the consideration of adoption or amendment of general plans, each entity receiving a proposed general plan or amendment of a general plan should have 45 days from the date the referring agency mails it or delivers it in which to comment unless a longer period is specified. The commenting entity may submit its comments at the scoping meeting. A Responsible Agency or other public agency shall only make comments regarding those activities that are within its area of expertise or that are required to be carried out or approved by the Responsible Agency. These comments must be supported by specific documentation. Any mitigation measures submitted to the City by a Responsible or Trustee Agency shall be limited to measures that mitigate impacts to resources that are within the Responsible or Trustee Agency's authority. For projects of statewide, area -wide, or regional significance, consultation with transportation planning agencies or with public agencies that have transportation facilities within their jurisdictions shall be for the purpose of obtaining information concerning the project's effect on major local arterials, public transit, freeways, highways, overpasses, on -ramps, off - ramps, and rail transit services. Moreover, the Lead Agency should also consult with public transit agencies with facilities within one-half mile of the proposed project. Any transportation planning agency or public agency that provides information to the Lead Agency must be notified of, and provided with, copies of any environmental documents relating to the project. 7.11 EARLY CONSULTATION ON PROJECTS INVOLVING PERMIT ISSUANCE. When the project involves the issuance of a lease, permit, license, certificate, or other entitlement for use by one or more public agencies, the City, upon request of the applicant, shall meet with the applicant regarding the range of actions, potential alternatives, mitigation measures and significant effects to be analyzed in depth in the EIR. The City may also consult with concerned persons identified by the applicant and persons who have made written requests to be consulted. Such requests for early consultation must be made not later than thirty (30) days after the City's decision to prepare an EIR. 7.12 CONSULTATION WITH WATER AGENCIES REGARDING LARGE DEVELOPMENT PROJECTS. For certain development projects, cities and counties must consult with water agencies. If the City is a water provider for the project, the city or county may request consultation with the City. (See Local Guidelines Sections 5.16 and 5.17 for more information on these requirements.) 2019 City of Santa Ana Local Guidelines 7-9 ®Best Best & Krieger LLP 75D-111 Local Guidelines for Implementing the California Environmental Ouality Act (2019) — ENVIRONMENTAL IMPACT REPORT 7.13 AIRPORT LAND USE PLAN. When the City prepares an EIR for a project within the boundaries of a comprehensive airport land use plan, or, if such a plan has not been adopted, for a project within two (2) nautical miles of a public airport or public use airport, the City shall utilize the Airport Land Use Planning Handbook published by Caltrans' Division of Aeronautics to assist in the preparation of the EIR relative to potential airport or related safety hazards and noise problems. 7.14 GENERAL ASPECTS OF AN EIR. Both a Draft and Final EIR must contain the information outlined in Local Guidelines Sections 7.17 and 7.18. Each element must be covered, and when elements are not separated into distinct sections, the document must state where in the document each element is covered. The body of the EIR shall include summarized technical data, maps, diagrams and similar relevant information. Highly technical and specialized analyses and data should be included in appendices. Appendices may be prepared in separate volumes, but must be equally available to the public for examination. All documents used in preparation of the EIR must be referenced. An EIR shall not include "trade secrets," locations of archaeological sites and sacred lands, or any other information subject to the disclosure restrictions of the Public Records Act (Government Code Section 6250, et seq.). The EIR should discuss environmental effects in proportion to their severity and probability of occurrence. Effects dismissed in the Initial Study as clearly insignificant and unlikely to occur need not be discussed. The Initial Study should be used to focus the EIR so that the EIR identifies and discusses only the specific environmental problems or aspects of the project that have been identified as potentially significant or important. A copy of the Initial Study should be attached to the EIR or included in the administrative record to provide a basis for limiting the impacts discussed. The EIR shall contain a statement briefly indicating the reason for determining that various effects of a project that could possibly be considered significant were not found to be significant and consequently were not discussed in detail in the EIR. The City should also note any conclusion by it that a particular impact is too speculative for evaluation. The EIR should omit unnecessary descriptions of projects and emphasize feasible mitigation measures and alternatives to projects. 7.15 USE OF REGISTERED CONSULTANTS IN PREPARING EIRS. An EIR is not a technical document that can be prepared only by a registered consultant or professional. However, state statutes may provide that only registered professionals can prepare certain technical studies that will be used in an EIR, or that will control the detailed design, construction, or operation of the proposed project and that will be prepared in support of an EIR. 2019 City of Santa Ana Local Guidelines 7-10 ®Best Best & Krieger LLP 75D-112 Local Guidelines for Implementing the California Environmental Quality Act (2019) ENVIRONMENTAL IMPACT REPORT 7.16 INCORPORATION BY REFERENCE. An EIR, Negative Declaration, or Mitigated Negative Declaration may incorporate by reference all or portions of another document that is a matter of public record or is generally available to the public. Any incorporated document shall be considered to be set forth in full as part of the text of the environmental document. When all or part of another document is incorporated by reference, that document shall be made available to the public for inspection at the City's offices. The environmental document shall state where incorporated documents will be available for inspection. When incorporation by reference is used, the incorporated part of the referenced document shall be briefly summarized, if possible, or briefly described if the data or information cannot be summarized. The relationship between the incorporated document and the EIR, Negative Declaration, or Mitigated Negative Declaration shall be described. When information from an environmental document that has previously been reviewed through the state review system ("State Clearinghouse") is incorporated by the City, the state identification number of the incorporated document should be included in the summary or text of the EIR. 7.17 STANDARDS FOR ADEQUACY OF AN EIR. An EIR should be prepared with a sufficient degree of analysis to provide decision - makers with information that enables them to make a decision that takes into account the environmental consequences of the project. The evaluation of environmental effects need not be exhaustive, but must be within the scope of what is reasonably feasible. The EIR should be written and presented in such a way that it can be understood by governmental decision -makers and members of the public. A good faith effort at completeness is necessary. The adequacy of an EIR is assessed in terms of what is reasonable in light of factors such as the magnitude of the project at issue, the severity of its likely environmental impacts, and the geographic scope of the project. CEQA does not require a Lead Agency to conduct every test or perform all research, study, and experimentation recommended or demanded by commenters, but CEQA does require the Lead Agency to make a good faith, reasoned response to timely comments raising significant environmental issues. There is no need to unreasonably delay adoption of an EIR in order to include results of studies in progress, even if those studies will shed some additional light on subjects related to the project. 7.18 FORM AND CONTENT OF EIR. The text of the EIR should normally be less than 150 pages. For proposals of unusual scope or complexity, the EIR may be longer than 150 pages but should normally be less than 300 pages. The required contents of an EIR are set forth in Sections 15122 through 15132 of the State CEQA Guidelines. In brief, the EIR must contain: (a) A table of contents or an index; (b) A brief summary of the proposed project, including each significant effect with proposed mitigation measures and alternatives, areas of known controversy and issues to be resolved including the choice among alternatives, how to mitigate the significant effects 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-113 Local Guidelines for Implementing the California Environmental Quality Act (2019) ENVIRONMENTAL IMPACT REPORT and whether there are any significant and unavoidable impacts (generally, the summary should be less than fifteen (15) pages); (c) A description of the proposed project, including its underlying purpose and a list of permit and other approvals required to implement the project (see Local Guidelines Section 7.24 regarding analysis of future project expansion); (d) A description of the environmental setting, which includes the project's physical environmental conditions from both a local and regional perspective at the time the Notice of Preparation is published, or if no Notice of Preparation is published, at the time environmental analysis begins. (State CEQA Guidelines Section 15125.) This environmental setting will normally constitute the baseline physical conditions by which the Lead Agency determines whether an impact is significant. However, the City, when acting as Lead Agency, may choose any baseline that is appropriate as long as the City's choice of baseline is supported by substantial evidence; (e) A discussion of any inconsistencies between the proposed project and applicable general, specific and regional plans. Such plans include, but are not limited to, the applicable air quality attainment or maintenance plan or State Implementation Plan, area -wide waste treatment and water quality control plans, regional transportation plans, regional housing allocation, regional blueprint plans, plans for the reduction of greenhouse gas emissions, habitat conservation plans, natural community conservation plans and regional land use plans; (f) A description of the direct and indirect significant environmental impacts of the proposed project explaining which, if any, can be avoided or mitigated to a level of insignificance, indicating reasons that various possible significant effects were determined not to be significant and denoting any significant effects that are unavoidable or could not be mitigated to a level of insignificance. Direct and indirect significant effects shall be clearly identified and described, giving due consideration to both short-term and long- term effects; (g) Potentially significant energy implications of a project must be considered to the extent relevant and applicable to the project (see Local Guidelines Section 5.20); (h) An analysis of a range of alternatives to the proposed project that could feasibly attain the project's objectives as discussed in Local Guidelines Section 7.23; (i) A description of any significant irreversible environmental changes that would be involved in the proposed action should it be implemented if, and only if, the EIR is being prepared in connection with: (1) The adoption, amendment, or enactment of a plan, policy, or ordinance of a public agency; (2) The adoption by a Local Agency Formation Commission of a resolution making determinations; or (3) A project that will be subject to the requirement for preparing an Environmental Impact Statement pursuant to NEPA; (j) An analysis of the growth -inducing impacts of the proposed action. The discussion should include ways in which the project could foster economic or population growth, or the construction of additional housing, either directly or indirectly, in the surrounding 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-114 Local Guidelines for Implementing the C Iifomia Environmental Ouality Act (2019) ENVIRONMENTAL IMPACT REPORT environment. Growth -inducing impacts may include the estimated energy consumption of growth induced by the project; (k) A discussion of any significant, reasonably anticipated future developments and the cumulative effects of all proposed and anticipated action as discussed in Local Guidelines Section 7.24; (1) In certain situations, a regional analysis should be completed for certain impacts, such as air quality; (m) A discussion of any economic or social effects, to the extent that they cause, or may be used to determine, significant environmental impacts; (n) A statement briefly indicating the reasons that various possible significant effects of a project were determined not to be significant and, therefore, were not discussed in the EIR; (o) The identity of all federal, state or local agencies or other organizations and private individuals consulted in preparing the EM, and the identity of the persons, firm or agency preparing the EIR, by contract or other authorization. To the fullest extent possible, the City should integrate CEQA review with these related environmental review and consultation requirements; (p) A discussion of those potential effects of the proposed project on the environment that the City has determined are or may be significant. The discussion on other effects may be limited to a brief explanation as to why those effects are not potentially significant; and (q) A description of feasible measures, as set forth in Local Guidelines Section 7.22, which could minimize significant adverse impacts. 7.19 CONSIDERATION AND DISCUSSION OF SIGNIFICANT ENVIRONMENTAL IMPACTS. An EIR must identify and focus on the significant effects of the proposed project on the environment. In assessing the proposed project's potential impacts on the environment, the City should normally limit its examination to comparing changes that would result from the project as compared to the existing physical conditions in the affected area as they exist when the Notice of Preparation is published. If a Notice of Preparation is not published for the project, the City should compare the proposed project's potential impacts to the physical conditions that exist at the time environmental review begins. Direct and indirect significant effects of the project on the environment must be clearly identified and described, considering both the short-term and long-term effects. The discussion should include relevant specifics of the area, the resources involved, physical changes, alterations to ecological systems, and changes induced in population distribution, population concentration, the human use of the land (including commercial and residential development), health and safety problems caused by the physical changes, and other aspects of the project that may impact resources in the project area, such as water, historical resources, scenic quality, and public services. The EIR must also analyze any significant environmental effects the project might cause or risk exacerbating by bringing development and people into the area. If applicable, an EII2 should also evaluate any potentially significant direct, indirect, or cumulative environmental impacts of locating development in areas susceptible to hazardous conditions (e.g., floodplains, coastlines, wildfire risk areas), including both short-term and long-term conditions, as identified on authoritative hazard maps, risk assessments or in land use plans addressing such hazards areas. 2019 City of Santa Ana Local Guidelines 7-13 ®Best Best & Krieger LLP 75D-115 Local Guidelines for Implementing the California Environmental Quality Act (2019) ENVIRONMENTAL IMPACT REPORT If analysis of the project's energy use reveals that the project may result in significant environmental effects due to wasteful, inefficient, or unnecessary use of energy, or wasteful use of energy resources, the EIR shall mitigate that energy use. This analysis should include the project's energy use for all project phases and components, including transportation -related energy, during construction and operation. In addition to building code compliance, other relevant considerations may include, among others, the project's size, location, orientation, equipment use and any renewable energy features that could be incorporated into the project. This analysis is subject to the rule of reason and shall focus on energy use that is caused by the project. This analysis may be included in related analyses of air quality, greenhouse gas emissions, transportation or utilities in the discretion of the Lead Agency. The EIR must describe all significant impacts, including those that can be mitigated but not reduced to a level of insignificance. Where there are impacts that cannot be alleviated without imposing an alternative design, their implications and the reasons why the project is being proposed, notwithstanding their effect, should be described. The EIR must also discuss any significant irreversible environmental changes that would be caused by the project. For example, use of nonrenewable resources during the initial and continued phases of a project may be irreversible if a large commitment of such resources makes removal or nonuse thereafter unlikely. Additionally, irreversible commitment of resources may include a discussion of how the project preempts future energy development or future energy conservation. The discussion of irreversible commitment of resources may include a discussion of how the project preempts future energy development or future energy conservation. Irretrievable commitments of resources to the proposed project should be evaluated to assure that such current consumption is justified. 7.20 ENVIRONMENTAL SETTING An EIR must include a description of the physical environmental conditions in the vicinity of the project. This environmental setting will normally constitute the baseline physical conditions by which the Lead Agency determines whether an impact is significant. The description of the environmental setting shall be no longer than is necessary to provide an understanding of the significant effects of the proposed project and its alternatives. The purpose of this requirement is to give the public and decision makers the most accurate and understandable picture practically possible of the project's likely near -term and long-term impacts. (1) Generally, the Lead Agency should describe physical environmental conditions as they exist at the time the Notice of Preparation is published, or if no Notice of Preparation is published, at the time environmental analysis is commenced, from both a local and regional perspective. Where existing conditions change or fluctuate over time, and where necessary to provide the most accurate picture practically possible of the project's impacts, the Lead Agency may define existing conditions by referencing historic conditions, or conditions expected when the project becomes operational, or both, that are supported with substantial evidence. In addition, the Lead Agency may also use baselines consisting of both existing conditions and projected future conditions that are supported by reliable projections based on substantial evidence in the record. 2019 City of Santa Ana Local Guidelines 7-14 ®Best Best & Krieger LLP 75D-116 Local Guidelines for Implementing the California Environmental Gustily Act (2019) ENVIRONMENTAL IMPACT REPORT (2) The Lead Agency may use projected future conditions (beyond the date of project operations) as the sole baseline for analysis only if it demonstrates with substantial evidence that use of existing conditions would be either misleading or without informative value to decision - makers and the public. Use of projected future conditions as the only baseline must be supported by reliable projections based on substantial evidence in the record. (3) An existing conditions baseline shall not include hypothetical conditions —such as those that might be allowed, but have never actually occurred, under existing permits or plans — as the baseline. 7.21 ANALYSIS OF CUMULATIVE IMPACTS. An EIR must discuss cumulative impacts when the project's incremental effect is "cumulatively considerable" as defined in Local Guidelines Section 11.14. When the City is examining a project with an incremental effect that is not "cumulatively considerable," it need not consider that effect significant, but must briefly describe the basis for this conclusion. A project's contribution may be less than cumulatively considerable if the project is required to implement or fund its fair share of a mitigation measure designed to alleviate the cumulative impact. When relying on a fee program or mitigation measure(s), the City must identify facts and analysis supporting its conclusion that the cumulative impact is less than significant. The City may determine that a project's incremental contribution to a cumulative effect is not cumulatively considerable if the project will comply with the requirements in a previously approved plan or mitigation program that provides specific requirements that will avoid or substantially lessen the cumulative problem in the geographic area in which the project is located. Such plans and programs may include, but are not limited to: (1) Water quality control plans; (2) Air quality attainment or maintenance plans; (3) Integrated waste management plans; (4) Habitat conservation plans; (5) Natural community conservation plans; and/or (6) Plans or regulations for the reduction of greenhouse gas emissions. When relying on such a regulation, plan, or program, the City should explain how implementing the particular requirements of the plan, regulation or program will ensure that the project's incremental contribution to the cumulative effect is not cumulatively considerable. A cumulative impact consists of an impact that is created as a result of the combination of the project evaluated in the EIR together with other projects causing related impacts. An EIR should not discuss impacts that do not result in part from the project evaluated in the EIR. 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-117 Local Guidelines for Implementing the California Environmental Ouality Act (2019) ENVIRONMENTAL IMPACT REPORT The discussion of cumulative impacts in an EIR must focus on the cumulative impacts to which the identified other projects contribute, rather than on the attributes of other projects that do not contribute to the cumulative impact. The discussion of significant cumulative impacts must include either of the following: (1) A list of past, present, and probable future projects causing related or cumulative impacts including, if necessary, those projects outside the control of the City; or (2) A summary of projections contained in an adopted local, regional or statewide plan, or related planning document, that describes or evaluates conditions contributing to the cumulative effect. Such plans may include: a general plan, regional transportation plan, or a plan for the reduction of greenhouse gas emissions. A summary of projections may also be contained in an adopted or certified prior environmental document for such a plan. Such projections may be supplemented with additional information such as a regional modeling program. Documents used in creating a summary of projections must be referenced and made available to the public. When utilizing a list, as suggested above, factors to consider when determining whether to include a related project should include the nature of each environmental resource being examined and the location and type of project. Location may be important, for example, when water quality impacts are involved since projects outside the watershed would probably not contribute to a cumulative effect. Project type may be important, for example, when the impact is specialized, such as a particular air pollutant or mode of traffic. Public Resources Code section 21094 also states that if a Lead Agency determines that a cumulative effect has been adequately addressed in an earlier EIR, it need not be examined in a later EIR if the later project's incremental contribution to the cumulative effect is not cumulatively considerable. A cumulative effect has been adequately addressed in the prior EIR if: (1) it has been mitigated or avoided as a result of the prior EIR; or (2) the cumulative effect has been examined in a sufficient level of detail to enable the effect to be mitigated or avoided by site -specific revisions, the imposition of conditions, or other means in connection with the approval of the later project. Public Resources Code section 21094 only applies to earlier projects that (1) are consistent with the program, plan, policy, or ordinance for which an environmental impact report has been prepared and certified, (2) are consistent with applicable local land use plans and zoning of the city, county, or city and county in which the later project would be located and (3) are not subject to Public Resources Code section 21166. If the Lead Agency determines that the cumulative effect has been adequately addressed in a prior EIR, the Lead Agency should clearly explain the basis for its determination in the current environmental documentation for the project. 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-118 Local Guidelines for Implementing the California Environmental Ouality Act (2019) ENVIRONMENTAL IMPACT REPORT The City should define the geographic scope of the area affected by the cumulative effect and provide a reasonable explanation for the geographic limitation used. 7.22 ANALYSIS OF MITIGATION MEASURES. The discussion of mitigation measures in an EIR must distinguish between measures proposed by project proponents and other measures proposed by Lead, Responsible or Trustee Agencies. This discussion shall identify mitigation measures for each significant environmental effect identified in the EIR. Where several measures are available to mitigate an impact, each should be disclosed and the basis for selecting a particular measure should be identified. Formulation of mitigation measures shall not be deferred until some future time The specific details of a mitigation measure, however, may be developed after project approval when it is impractical or infeasible to include those details during the project's environmental review provided that the Lead Agency (1) commits itself to the mitigation, (2) adopts specific performance standards the mitigation will achieve, and (3) identifies the type(s) of potential action(s) that can feasibly achieve that performance standard and that will be considered, analyzed, and potentially incorporated in the mitigation measure. Compliance with a regulatory permit or other similar process may be identified as mitigation if compliance would result in implementation of measures that would be reasonably expected, based on substantial evidence in the record, to reduce the significant impact to the specified performance standards. If a mitigation measure would cause one or more significant effects in addition to those that would be caused by the project as proposed, the effects of the mitigation measure shall be disclosed but in less detail than the significant effects of the project itself. If a project includes a housing development, the City may not reduce the project's proposed number of housing units as a mitigation measure or project alternative if the City determines that there is another feasible specific mitigation measure or project alternative that would provide a comparable level of mitigation without reducing the number of housing units. Mitigation measures must be fully enforceable through permit conditions, agreements, or other legally binding instruments. In the case of the adoption of a plan, policy, regulation, or other public project, mitigation measures can be incorporated into the plan, policy, regulation, or project design. Mitigation measures must also be consistent with all applicable constitutional requirements such as the "nexus" and "rough proportionality" standards—i.e., there must be an essential nexus between the mitigation measure and a legitimate governmental interest, and the mitigation measure must be "roughly proportional" to the impacts of the project. Where maintenance, repair, stabilization, rehabilitation, restoration, preservation, conservation or reconstruction of a historical resource will be conducted in a manner consistent with the Secretary of the Interior's "Standards for the Treatment of Historic Properties with Guidelines for Preserving, Rehabilitating, Restoring and Reconstructing Historic Buildings" (1995), Weeks and Grimmer, the project's impact on the historical resource shall generally be considered mitigated below a level of significance and thus not significant. 2019 City of Santa Ana Local Guidelines 7-17 ®Best Best & Krieger LLP 75D-119 Local Guidelines for Implementing the California Environmental Quality Act (2019) ENVIRONMENTAL IMPACT REPORT The City should, whenever feasible, seek to avoid damaging effects on any historical resource of an archaeological nature. The following must be considered and discussed in an EIR for a project involving an archaeological site: (a) Preservation in place is the preferred manner of mitigating impacts to archaeological sites; and (b) Preservation in place may be accomplished by, but is not limited to, the following: (1) Planning construction to avoid archaeological sites; (2) Incorporation of sites within parks, green space, or other open spaces; (3) Covering the archaeological sites with a layer of chemically stable soil before building tennis courts, parking lots, or similar facilities on the site; and/or (4) Deeding the site into a permanent conservation easement. When data recovery through excavation is the only feasible mitigation, a data recovery plan, which makes provision for adequately recovering the scientifically consequential information from and about the historical resource, shall be prepared and adopted prior to excavation. Such studies must be deposited with the California Historical Resources Regional Information Center. Data recovery shall not be required for a historical resource if the City determines that existing testing or studies have adequately recovered the scientifically consequential information from and about the archaeological or historical resource, provided that the determination is documented in the EIR and that the studies are deposited with the California Historical Resources Regional Information Center. 7.23 ANALYSIS OF ALTERNATIVES IN AN EIR. The alternatives analysis must describe and evaluate the comparative merits of a range of reasonable alternatives to the project or to the location of the project which would feasibly attain most of the basic objectives of the project, but which would avoid or substantially lessen any of the significant effects of the project. An EIR need not consider every conceivable alternative to a project, and it need not consider alternatives that are infeasible. Rather, an EIR must consider a reasonable range of potentially feasible alternatives that will foster informed decision -making and public participation. Purpose of the Alternatives Analysis: An EIR must identify ways to mitigate or avoid the significant effects that a project may have on the environment. For this reason, a discussion of alternatives must focus on alternatives to the project or its location that are capable of avoiding or substantially lessening any significant effect of the project, even if these alternatives would impede to some degree the attainment of the project objectives or would be more costly. Selection of a Range of Reasonable Alternatives: The range of potential alternatives to the proposed project shall include those that could feasibly accomplish most of the basic purposes of the project and could avoid or substantially lessen one or more of the significant 2019 City of Santa Ana Local Guidelines 7-18 ®Best Best & Krieger LLP 75D-120 Local Guidelines for Implementing the CaliforniaEnvironmental Ouality Act (2019) ENVIRONMENTAL UAPACT REPORT effects, even if those alternatives would be more costly or would impede to some degree the attainment of the project's objectives. The EIR should briefly describe the rationale for selecting the alternatives to be discussed. The EIR should also identify any alternatives that were considered by the Lead Agency and rejected as infeasible during the scoping process, and it should briefly explain the reasons for rejecting those alternatives. Additional information explaining the choice of alternatives should be included in the administrative record. Among the factors that may be used to eliminate alternatives from detailed consideration in an EIR are: (a) failure to meet most of the basic project objectives; (b) infeasibility; or (c) inability to avoid significant environmental impacts. Evaluation of Alternatives: The EIR shall include sufficient information about each alternative to allow meaningful evaluation, analysis and comparison with the proposed project. A matrix displaying the major characteristics and significant environmental effects of each alternative may be used to summarize the comparison. The matrix may also identify and compare the extent to which each alternative meets project objectives. If an alternative would cause one or more significant effects in addition to those that would be caused by the project as proposed, the significant effects of the alternative shall be discussed but in less detail than the significant effects of the project as proposed. The Rule of Reason: The range of alternatives required in an EIR is governed by a "rule of reason" which courts have held means that an alternatives discussion must be reasonable in scope and content. Therefore, the EIR must set forth only those alternatives necessary to permit public participation, informed decision -making, and a reasoned choice. The alternatives shall be limited to ones that would avoid or substantially lessen any of the significant effects of the project. Of those alternatives, the EIR need examine in detail only the ones the City determines could feasibly attain most of the basic objectives of the project. An EIR need not consider an alternative whose effect cannot be reasonably ascertained and whose implementation is remote and speculative. Feasibility of Alternatives: The factors that may be taken into account when addressing the feasibility of alternatives include: site suitability; economic viability; availability of infrastructure; general plan consistency; other plans or regulatory limitations; jurisdictional boundaries (projects with a regionally significant impact should consider the regional context); and whether the proponent already owns the alternative site or can reasonably acquire, control or otherwise have access to the site. No one factor establishes a fixed limit on the scope of reasonable alternatives. Alternative Locations: The first step in the alternative location analysis is to determine whether any of the significant effects of the project could be avoided or substantially lessened by putting the project in another location. This is the key question in this analysis. Only locations that would avoid or substantially lessen any of the significant effects of the project need be considered for inclusion in the EIR. The second step in this analysis is to determine whether any of the alternative locations are feasible. If the City concludes that no feasible alternative locations exist, it must disclose its reasons, and it should include them in the EIR. When a previous document has sufficiently analyzed a range of reasonable alternative locations and environmental impacts for a project with 2019 City of Santa Ana Local Guidelines 7-19 Mest Best & Krieger LLP 75D-121 Local Guidelines for Implementing the California Environmental Quality Act (2019) ENVIRONMENTAL IMPACT REPORT the same basic purpose, the City should review the previous document and incorporate the previous document by reference. To the extent the circumstances have remained substantially the same with respect to an alternative, the EIR may rely on the previous document to help it assess the feasibility of the potential project alternative. The "No Project" Alternative: The specific alternative of "no project" must be evaluated along with its impacts. The purpose of describing and analyzing the no project alternative is to allow decision -makers to compare the impacts of approving the proposed project with the impacts of not approving the proposed project. The no project alternative may be different from the baseline environmental conditions. The no project alternative will be the same as the baseline only if it is identical to the existing environmental setting and the Lead Agency has chosen the existing environmental setting as the baseline. A discussion of the "no project" alternative should proceed along one of two lines: (a) When the project is the revision of an existing land use or regulatory plan, policy or ongoing operation, the "no project" alternative will be the continuation of the existing plan, policy or operation into the future. Typically, this is a situation where other projects initiated under the existing plan will continue while the new plan is developed. Thus, the projected impacts of the proposed plan or alternative plans would be compared to the impacts that would occur under the existing plan; or (b) If the project is other than a land use or regulatory plan, for example a development project on identifiable property, the "no project" alternative is the circumstance under which the project does not proceed. This discussion would compare the environmental effects of the property remaining in its existing state against environmental effects that would occur if the project is approved. If disapproval of the project would result in predictable actions by others, such as the proposal of some other project, this "no project" consequence should be discussed. After defining the "no project" alternative, the City should proceed to analyze the impacts of the "no project" alternative by projecting what would reasonably be expected to occur in the foreseeable future if the project were not approved, based on current plans and consistent with available infrastructure and community services. If the "no project" alternative is the environmentally superior alternative, the EIR must also identify another environmentally superior alternative among the remaining alternatives. Remote or Speculative Alternatives: An EIR need not consider an alternative whose effect cannot be reasonably ascertained and whose implementation is remote and speculative. 7.24 ANALYSIS OF FUTURE EXPANSION. An EIR must include an analysis of the environmental effects of future expansion (or other similar future modifications) if there is credible and substantial evidence that: (a) The future expansion or action is a reasonably foreseeable consequence of the initial project; and (b) The future expansion or action is likely to change the scope or nature of the initial project or its environmental effects. 2019 City of Santa Ana Local Guidelines 7-20 OBest Best & Krieger LLP 75D-122 Local Guidelines for Implementing the California Envimmnental Oual'ty Act (2019) ENVIRONMENTAL IMPACT REPORT Absent these two circumstances, future expansion of a project need not be discussed. CEQA does not require speculative discussion of future development that is unspecific or uncertain. However, if future action is not considered now, it must be considered and environmentally evaluated before it is actually implemented. 7.25 NOTICE OF COMPLETION OF DRAFT EIR; NOTICE OF AVAILABILITY OF DRAFT EIR. Notice of Completion. When the Draft EIR is completed, a Notice of Completion (Form "H") must be filed with OPR in a printed hard copy or in electronic form on a diskette or by electronic mail transmission. The Notice shall contain: (a) A brief description of the proposed project; (b) The location of the proposed project including the proposed project's latitude and longitude; (c) An address where copies of the Draft EIR are available and a description of how the Draft EIR can be provided in an electronic format; and (d) The review period during which comments will be received on the Draft EIR. OPR has developed a model form Notice of Completion. Form H follows OPR's model. To ensure that the documents are accepted by OPR staff, this form should be used when documents are transmitted to OPR. Notice of Availability. At the same time it sends a Notice of Completion to OPR, the City shall provide public notice of the availability of the Draft EIR by distributing a Notice of Availability of Draft EIR (Form "K"). The Notice of Availability shall include at least the following information: (a) A brief description of the proposed project and its location; (b) The starting and ending dates for the review period during which the City will receive comments, the manner in which the City will receive those comments, and whether the review period has been shortened; (c) The date, time, and place of any scheduled public meetings or hearings to be held by the City on the proposed project, if the City knows this information when it prepares the Notice; (d) A list of the significant environmental effects anticipated as a result of the project; (e) The address where copies of the EIR and all documents incorporated by reference in the EIR will be available for public review, and a description of how the Draft EIR can be obtained in electronic format. This location shall be readily accessible to the public during the City's normal working hours ; and (f) A statement indicating whether the project site is included on any list of hazardous waste facilities, land designated as hazardous waste property, or hazardous waste disposal site, and, if so, the information required in the Hazardous Waste and Substances Statement pursuant to Government Code Section 65962.5. The Notice of Availability shall be provided to: (a) Each Responsible and Trustee Agency; 2019 City of Santa Ana Local Guidelines OBest Best & Krieger LLP 75D-123 Local Guidelines for Implementing the California Environmental Quality Act (2019) ENVIRONMENTAL IMPACT REPORT (b) Any other federal, state, or local agency that has jurisdiction by law or exercises authority over resources affected by the project, including: (1) Any water supply agency consulted under Local Guidelines Section 5.16; (2) Any city or county bordering on the project area; (3) For a project of statewide, regional, or area -wide significance, any transportation agencies or public agencies that have major local arterials or public transit facilities within five (5) miles of the project site; or freeways, highways, or rail transit service within ten (10) miles of the project site that could be affected by the project; (4) For a subdivision project located within one mile of a facility of the State Water Resources Development System, the California Department of Water Resources; and (5) For a general plan amendment, a project of statewide, regional, or area -wide significance, or a project that relates to a public use airport, to any "military service" (defined in Section 11.42 of these Local Guidelines) that has provided the City with its contact office and address and notified the City of the specific boundaries of a "low-level flight path" (defined in Section 11.37 of these Local Guidelines), "military impact zone" (defined in Section 11.41 of these Local Guidelines), or "special use airspace" (defined in Section 11.67of these Local Guidelines; (c) The last known name and address of all organizations and individuals who have previously filed a written request with the City to receive these Notices; (d) For certain projects that may impact a low-level flight path, military impact zone, or special use airspace and that meet the other criteria of Local Guidelines Section 7.04, the specified military services contact; (e) For certain projects that involve the construction or alteration of a facility anticipated to emit hazardous air emissions or handle hazardous substances within one -quarter mile of a school and that meet the other requirements of Local Guidelines Section 7.36, any potentially affected school district; (f) For certain waste -burning projects that meet the requirements of Local Guidelines Section 5.11 (see also Local Guidelines Section 7.27), the owners and occupants of property within one-fourth mile of any parcel on which the project will be located; and (g) For a project that establishes or amends a redevelopment plan that contains land in agricultural use, notice and a copy of the Draft EIR shall be provided to the agricultural and farm agencies and organizations specified in Health and Safety Code Section 33333.3. The City requires requests for copies of these Notices to be in writing and to be renewed annually; moreover, the City may charge a fee for the reasonable cost of providing these Notices. A project will not be invalidated due to a failure to send a requested Notice provided there has been substantial compliance with these notice provisions. 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-124 Local Guidelines for Implementing the California Environmental Quality Act (2019) ENVIRONMENTAL IMPACT REPORT Staff may also consult with and obtain comments from any person known to have special expertise or any other person or organization whose comments relative to the Draft EIR would be desirable. In addition, notice shall be given to the public by at least one of the following procedures (a) Publication of the Notice of Completion and/or the Notice of Availability at least once in a newspaper of general circulation in the area affected by the proposed project. If more than one area will be affected, the notice shall be published in the newspaper of largest circulation from among the newspapers of general circulation in those areas; (b) Posting of the Notice of Completion and/or the Notice of Availability on and off site in the area where the project is to be located; or (c) Direct mailing of the Notice of Completion and/or the Notice of Availability to owners and occupants of property contiguous to the project, as identified on the latest equalized assessment roll. The Notice of Completion and Notice of Availability shall be posted in the office of the Clerk in each county in which the project is located for at least thirty (30) days. If the public review period for the Draft EIR is longer than thirty (30) days, the City may wish to leave the Notice posted until the public review period for the Draft EIR has expired. Copies of the Draft EIR shall also be made available at the City office for review by members of the general public. The City may require any person obtaining a copy of the Draft EIR to reimburse the City for the actual cost of its reproduction. Copies of the Draft EIR should also be famished to appropriate public library systems. The City is encouraged to make copies of filed notices available in electronic format on the Internet. Such electronic postings are in addition to the procedures required by the CEQA Guidelines and the Public Resources Code. 7.26 SUBMISSION OF DRAFT EIR TO STATE CLEARINGHOUSE. A Draft EIR must be submitted to the State Clearinghouse for review by state agencies in the following situations: (a) A state agency is the Lead Agency for the Draft EIR; (b) A state agency is a Responsible Agency, Trustee Agency, or otherwise has jurisdiction by law over resources potentially affected by the project; or (c) The Draft EIR is for a project identified in State CEQA Guidelines Section 15206 as being a project of statewide, regional, or area -wide significance. State CEQA Guidelines Section 15206 identifies the following types of projects as being examples of projects of statewide, regional, or area -wide significance that require submission to the State Clearinghouse for circulation: (1) General plans, elements, or amendments for which an EIR was prepared; 2019 City of Santa Ana Local Guidelines 7-23 mBest Best & Krieger LLP 75D-125 Local Guidelines for hnplementing the California Environmental Guality Act (2019) ENVIRONMENTAL IMPACT REPORT (2) Projects that have the potential for causing significant environmental effects beyond the city or county where the project would be located, such as: (a) Residential development of more than 500 units; (b) Commercial projects employing more than 1,000 persons or covering more than 500,000 square feet of floor space; (c) Office building projects employing more than 1,000 persons or covering more than 250,000 square feet of floor space; (d) Hotel or motel development of more than 500 rooms; and (e) Industrial projects housing more than 1,000 persons, occupying more than 40 acres of land, or covering more than 650,000 square feet of floor area; (3) Projects for the cancellation of a Williamson Act contract covering more than 100 acres; (4) Projects in one of the following Environmentally Sensitive Areas: (a) Lake Tahoe Basin; (b) Santa Monica Mountains Zone; (c) Sacramento -San Joaquin River Delta; (d) Suisun Marsh; (e) Coastal Zone, as defined by the California Coastal Act; (f) Areas within one -quarter mile of a river designated as wild and scenic; or (g) Areas within the jurisdiction of the San Francisco Bay Conservation and Development Commission; (5) Projects that would affect sensitive wildlife habitats or the habitats of any rare, threatened, or endangered species; (6) Projects that would interfere with water quality standards; and (7) Projects that would provide housing, jobs, or occupancy for 500 or more people within 10 miles of a nuclear power plant. A Draft EIR may be submitted to the State Clearinghouse when a state agency has special expertise with regard to the environmental impacts involved. When the Draft EIR will be reviewed through the State review process handled by the State Clearinghouse, a Notice of Completion (Form "H") should be used as a cover sheet. If the City uses the State Clearinghouse's online process to submit the Notice of Completion form, the form generated on the Internet site satisfies the State Clearinghouse's requirements. A sufficient number of copies of the documents must be sent to the State Clearinghouse for circulation. Staff should contact the State Clearinghouse to find out the correct number of printed copies required for circulation. Minimally, the City must submit one (1) copy of the Notice of Completion and fifteen (15) copies of the entire document. 2019 City of Santa Ana Local Guidelines 7-24 ®Best Best & Krieger LLP 75D-126 Local Guidelines for Implementing tie California Environmental Quality Act (2019) ENVIRONMENTAL IMPACT REPORT The City may submit fifteen (15) hard copies of the entire draft environmental document or fifteen (15) CD-ROMs of the entire document. The document must be on a CD-ROM in a common file format such as Word of Acrobat. In addition, each CD-ROM must be accompanied by fifteen (15) printed copies of the Draft EIR summary (as described in Local Guidelines Section 6.11), executive summary, or introduction section. Form "Q" may be used as a cover sheet for document transmittal. The summary allows both the State Clearinghouse and the various agency CEQA coordinators to distribute the documents quickly without the use of a computer. Submission of the Draft EIR to the State Clearinghouse affects the timing of the public review period as set forth in Local Guidelines Section 7.28. 7.27 SPECIAL NOTICE REQUIREMENTS FOR WASTE- AND FUEL -BURNING PROJECTS. For any waste -burning project, as defined in Local Guidelines Section 5.11, in addition to the notice requirements specified in Local Guidelines Sections 7.25 and 7.26, Notice of Availability of the Draft EIR shall be given by direct mailing or any other method calculated to provide delivery of the notice to the owners and occupants of property within one-fourth mile of any parcel or parcels on which the project is located. 7.28 TIME FOR REVIEW OF DRAFT EIR; FAILURE TO COMMENT. A period of between thirty (30) and sixty (60) days from the filing of the Notice of Completion of the Draft EIR shall be allowed for review of and comment on the Draft EIR, except in unusual situations. When a Draft EIR is submitted to the State Clearinghouse for review by state agencies, the public review period shall be at least forty-five (45) days, unless a shorter period is approved by the State Clearinghouse as discussed below. If a state agency is a Responsible Agency, or if the Draft EIR is submitted to the State Clearinghouse, the public review period shall be at least as long as the review period established by the State Clearinghouse. The public review period and the state agency review period may, but are not required to, begin and end at the same time. The state agency review period begins (day one) on the date that the State Clearinghouse distributes the Draft EIR to state agencies. The State Clearinghouse is required to distribute the Draft EIR to state agencies within three (3) working days from the date the State Clearinghouse receives the document, as long as the Draft EIR is complete when submitted to the State Clearinghouse. If the document submitted to the State Clearinghouse is not complete, the State Clearinghouse must notify the Lead Agency. The review period for the public and all other agencies may run concurrently with the state agency review period established by the State Clearinghouse. Under certain circumstances, a shorter review period of the Draft EIR by the State Clearinghouse can be requested by the City; however, a shortened review period shall not be less than thirty (30) days for a Draft EIR. Any request for a shortened review period must be made in writing by the City to OPR. The City may designate a person to make these requests. The City must contact all Responsible and Trustee agencies and obtain their agreement prior to obtaining a shortened review period. (See the Shortened Review Request Form "P.") 2019 City of Santa Ana Local Guidelines 7-25 ®Best Best & Krieger LLP 75D-127 Local Guidelines for Implementing the California Environmental Quality Act (2019) ENVIRONMENTAL IMPACT REPORT A shortened review period is not available for any proposed project of statewide, regional or area -wide environmental significance as determined pursuant to State CEQA Guidelines Section 15206. Any approval of a shortened review period shall be given prior to, and reflected in, the public notices. In the event a public agency, group, or person whose comments on a Draft EIR are solicited fails to comment within the required time period, it shall be presumed that such agency, group, or person has no comment to make, unless the Lead Agency has received a written request for a specific extension of time for review and comment and a statement of reasons for the request. Continued planning activities concerning the proposed project, short of formal approval, may continue during the period set aside for review and comment on the Draft EIR. 7.29 PUBLIC HEARING ON DRAFT EIR. CEQA does not require formal public hearings for certification of an EIR; public comments may be restricted to written communications. (However, a hearing is required to utilize the limited exemption for Transit Priority Projects as explained in Local Guidelines Section 3.16; to adopt a bicycle transportation plan as explained in Local Guidelines Section 3.20; and for certain other actions involving the replacement or deletion of mitigation measures under State CEQA Guidelines Section 15074.1.) However, if the City provides a public hearing on its consideration of a project, the City should include the project's environmental review documents as one of the subjects of the hearing. Notice of the time and place of the hearing shall be given in a timely manner in accordance with any legal requirements applicable to the proposed project. Generally, the requirements of the Ralph M. Brown Act will provide the minimum requirements for the inclusion of CEQA matters on agendas and at hearings. (Gov. Code, § 54950 et seq.) At a minimum, agendas for meetings and hearings before commissions, boards, councils, and other agencies must be posted in a location that is freely accessible to members of the public at least seventy-two (72) hours prior to a regular meeting. The agenda must contain a brief general description of each item to be discussed and the time and location of the meeting. (Gov. Code, § 54954.2.) Additionally, any legislative body or its presiding officer must post an agenda for each regular or special meeting on the local agency's Internet Web site, if the local agency has one. 7.30 RESPONSE TO COMMENTS ON DRAFT EIR. The Lead Agency shall evaluate any comments on environmental issues received during the public review period for the Draft EIR and shall prepare a written response to those comments that raise significant environmental issues. As stated below, the City, as Lead Agency, should also consider evaluating and responding to any comments received after the public review period. The written responses shall describe the disposition of any significant environmental issues that are raised in the comments. The responses may take the form of a revision of the Draft EIR, an attachment to the Draft EIR, or some other oral or written response that is adequate under the circumstances. If the City's position is at variance with specific recommendations or suggestions raised in the comment, the 2019 City of Santa Ana Local Guidelines 7-26 ©Best Best & Krieger LLP 75D-128 Local Guidelines for Implementing the California Environmental Ouality Act (2019) ENVIRONMENTAL IMPACT REPORT City's response must detail the reasons why such recommendations or suggestions were not accepted. The level of detail contained in the response, however, may correspond to the level of detail provided in the comment (i.e., responses to general comments may be general). A general response may be appropriate when a comment does not contain or specifically refer to readily available information, or does not explain the relevance of evidence submitted with the comment. Moreover, the City shall respond to any specific suggestions for project alternatives or mitigation measures for significant impacts, unless such alternatives or mitigation measures are facially infeasible. The response shall contain recommendations, when appropriate, to alter the project as described in the Draft EIR as a result of an analysis of the comments received. At least ten (10) days prior to certifying a Final EIR, the Lead Agency shall provide its proposed written response, either in printed copy or in an electronic format, to any public agency that has made comments on the Draft EIR during the public review period. The City, as Lead Agency, is not required to respond to comments received after the public review period. However, the City, as Lead Agency, should consider responding to all comments if it will not delay action on the Final EK since any comment received before final action on the EIR can form the basis of a legal challenge. A written response that addresses the comment or adequately explains the City's action in light of the comment may assist in defending against a legal challenge. 7.31 PREPARATION AND CONTENTS OF FINAL EIR. Following the receipt of any comments on the Draft EIR as required herein, such comments shall be evaluated by Staff and a Final EIR shall be prepared. The Final EIR shall meet all requirements of Local Guidelines Section 7.18 and shall consist of the Draft EIR or a revision of the Draft, a section containing either verbatim or in summary the comments and recommendations received through the review and consultation process, a list of persons, organizations and public agencies commenting on the Draft, and a section containing the responses of the City to the significant environmental points raised in the review and consultation process. 7.32 RECIRCULATION WHEN NEW INFORMATION IS ADDED TO EIR. When significant new information is added to the EIR after notice and consultation but before certification, the Lead Agency must recirculate the Draft EIR for another public review period. The term "information" can include changes in the project or environmental setting as well as additional data or other information. New information is significant only when the EIR is changed in a way that would deprive the public of a meaningful opportunity to comment upon a substantial adverse environmental effect of a project or a feasible way to mitigate or avoid such an effect, including a feasible project alternative, that the project proponents decline to implement. Recirculation is required, for example, when: (1) New information added to an EIR discloses: 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-129 Local Guidelines for Implementing the California Environmental Quality Act (2019) ENVIRONMENTAL IMPACT REPORT (a) A new significant environmental impact resulting from the project or from a new mitigation measure proposed to be implemented; or (b) A significant increase in the severity of an environmental impact (unless mitigation measures are also adopted that reduce the impact to a level of insignificance); or (c) A feasible project alternative or mitigation measure that clearly would lessen the significant environmental impacts of the project, but which the project proponents decline to adopt; or (2) The Draft EIR is so fundamentally and basically inadequate and conclusory in nature that meaningful public review and comment were precluded. Recirculation is not required when the new information added to the EIR merely clarifies or amplifies or makes insignificant modifications in an adequate EIR. If the revision is limited to a few chapters or portions of the ETR, the City as Lead Agency need only recirculate the chapters or portions that have been modified. A decision to not recirculate an EIR must be supported by substantial evidence in the record. When the City determines to recirculate a Draft EIR, it shall give Notice of Recirculation (Form "M") to every agency, person, or organization that commented on the prior Draft EIR. The Notice of Recirculation must indicate whether new comments must be submitted and whether the City has exercised its discretion to require reviewers to limit their comments to the revised chapters or portions of the recirculated EIR. The City shall also consult again with those persons contacted pursuant to Local Guidelines Section 7.25 before certifying the EIR. When the EIR is substantially revised and the entire EIR is recirculated, the City may require that reviewers submit new comments and need not respond to those comments received during the earlier circulation period. In those cases, the City should advise reviewers that, although their previous comments remain part of the administrative record, the final EIR will not provide a written response to those comments, and new comments on the revised EIR must be submitted. The City need only respond to those comments submitted in response to the revised EIR. When the EIR is revised only in part and the City is recirculating only the revised chapters or portions of the EIR, the City may request that reviewers limit their comments to the revised chapters or portions. The City need only respond to: (1) comments received during the initial circulation period that relate to chapters or portions of the document that were not revised and recirculated, and (2) comments received during the recirculation period that relate to the chapters or portions of the earlier EIR that were revised and recirculated. When recirculating a revised EIR, either in whole or in part, the City must, in the revised EIR or by an attachment to the revised EIR, summarize the revisions made to the previously circulated draft EIR. 7.33 CERTIFICATION OF FINAL EIR. Following the preparation of the Final EIR, Staff shall review the Final EIR and make a recommendation to the decision -making body regarding whether the Final EIR has been completed in compliance with CEQA, the State CEQA Guidelines and the City's Local 2019 City of Santa Ana Local Guidelines 7-28 ®Best Best & Krieger LLP 75D-130 Local Guidelines for Implementing the California En iro nnental Quality Act (2019) ENVIRONMENTAL IMPACT REPORT Guidelines. The Final EIR and Staff recommendation shall then be presented to the decision - making body. The decision -making body shall independently review and consider the information contained in the Final EIR and determine whether the Final EIR reflects its independent judgment. Before it approves the project, the decision -making body must certify and find that: (1) the Final EIR has been completed in compliance with CEQA, the State CEQA Guidelines and the City's Local Guidelines; (2) the Final EIR was presented to the decision - making body and the decision -making body reviewed and considered the information contained in the Final EIR before approving the project; and (3) the Final EIR reflects the City's independent judgment and analysis. Except in those cases in which the City Council is the final decision -making body for the project, any interested person may appeal the certification or denial of certification of a Final EIR to the City Council. Appeals must follow the procedures prescribed by the City. 7.34 CONSIDERATION OF EIR BEFORE APPROVAL OR DISAPPROVAL OF PROJECT. Once the decision -making body has certified the EIR, it may then proceed to consider the proposed project for purposes of approval or disapproval. 7.35 FINDINGS. The decision -making body shall not approve or carry out a project if a completed EIR identifies one or more significant environmental effects of the project unless it makes one or more of the following written findings for each such significant effect, accompanied by a brief explanation of the rationale supporting each finding. For impacts that have been identified as potentially significant, the possible findings are: (a) Changes or alterations have been required in, or incorporated into, the project which mitigate or avoid the significant effects on the environment as identified in the Final EIR, such that the impact has been reduced to a less -than -significant level; (b) Such changes or alterations are within the responsibility and jurisdiction of another public agency and not the City. Such changes have been, or can and should be, adopted by that other agency; or (c) Specific economic, legal, social, technological or other considerations, including considerations for the provision of employment opportunities for highly trained workers, make infeasible the mitigation measures or alternatives identified in the Final EIR. The decision -making body must make specific written findings stating why it has rejected an alternative to the project as infeasible. The findings required by this Section shall be supported by substantial evidence in the record. Measures identified and relied on to mitigate environmental impacts identified in the EIR to below a level of significance should be expressly adopted or rejected in the findings. The findings should include a description of the specific reasons for rejecting any mitigation measures or project alternatives identified in the EIR that would reduce the significant impacts of the project. Any mitigation measures that are adopted must be fully enforceable through permit conditions, agreements, or other measures. 2019 City of Santa Ana Local Guidelines ©Best Best & Krieger LLP 75D-131 Local Guidelines for Implementing the California Environmental Quality Act (2019) ENVIRONMENTAL IMPACT REPORT If any of the proposed alternatives could avoid or lessen an adverse impact for which no mitigation measures are proposed, the City shall analyze the feasibility of such alternative(s). If the project is to be approved without including such alternative(s), the City shall find that specific economic, legal, social, technological or other considerations, including considerations for the provision of employment opportunities for highly trained workers, make infeasible the alternatives identified in the Final EIR and shall list such considerations before such approval. The decision -making body shall not approve or carry out a project as proposed unless: (1) the project as approved will not have a significant effect on the environment; or (2) the project's significant environmental effects have been eliminated or substantially lessened (as determined through one or more of the findings indicated above), and any remaining unavoidable significant effects have been found acceptable because of facts and circumstances described in a Statement of Overriding Considerations (see Local Guidelines Section 7.37). Statements in the Draft EIR or comments on the Draft EIR are not determinative of whether the project will have significant effects. When making the findings required by this Section, the City as Lead Agency shall specify the location and custodian of the documents or other material which constitute the record of proceedings upon which it based its decision. 7.36 SPECIAL FINDINGS REQUIRED FOR FACILITIES THAT MAY EMIT HAZARDOUS AIR EMISSIONS NEAR SCHOOLS. Special procedural rules apply to projects involving the construction or alteration of a facility within one -quarter mile of a school when: (1) the facility might reasonably be anticipated to emit hazardous air emissions or to handle an extremely hazardous substance or a mixture containing extremely hazardous substances in a quantity equal to or greater than the threshold specified in Health and Safety Code Section 255320); and (2) the emissions or substances may pose a health or safety hazard to persons who would attend or would be employed at the school. If the project meets both of those criteria, the Lead Agency may not certify an EIR or approve a Negative Declaration or Mitigated Negative Declaration unless it makes a finding that: (a) The Lead Agency consulted with the affected school district or districts having jurisdiction over the school regarding the potential impact of the project on the school; and (b) The school district was given written notification of the project not less than thirty (30) days prior to the proposed certification of the EIR or approval of the Negative Declaration or Mitigated Negative Declaration. Implementation of this Local Guideline shall be consistent with the definitions and terms utilized in State CEQA Guidelines section 15186. Additionally, in its role as a Responsible Agency, the City should be aware that for projects involving the acquisition of a school site or the construction of a secondary or elementary school by a school district, the Negative Declaration, Mitigated Negative Declaration, or EIR prepared for the project may not be adopted or certified unless there is 2019 City of Santa Ana Local Guidelines ®Best Best & Ktieger LLP 75D-132 Local Guidelines for Implementing the California Environr ental O ality Act (2019) ENVIRONMENTAL IMPACT REPORT sufficient information in the entire record to determine whether any boundary of the school site is within 500 feet of the edge of the closest traffic lane of a freeway or other busy traffic corridor. If it is determined that the project involves the acquisition of a school site that is within 500 feet of the edge of the closest traffic lane of a freeway, or other busy traffic corridor, the Negative Declaration, Mitigated Negative Declaration, or EIR may not be adopted or certified unless the school board determines, through a health risk assessment pursuant to Section 44360(b)(2) of the Health and Safety Code and after considering any potential mitigation measures, that the air quality at the proposed project site does not present a significant health risk to pupils. 7.37 STATEMENT OF OVERRIDING CONSIDERATIONS. Before a project that has unmitigated significant adverse environmental effects can be approved, the decision -making body must adopt a Statement of Overriding Considerations. If the decision -making body finds in the Statement of Overriding Considerations that specific benefits of a proposed project outweigh the unavoidable adverse environmental effects, the adverse environmental effects may be considered "acceptable." Accordingly, the Statement of Overriding Considerations allows the decision -making body to approve a project despite one or more unmitigated significant environmental impacts identified in the Final EIR. A Statement of Overriding Considerations can be made only if feasible project alternatives or mitigation measures do not exist to reduce the environmental impact(s) to a level of insignificance and the benefits of the project outweigh the adverse environmental effect(s). The feasibility of project alternatives or mitigation measures is determined by whether the project alternative or mitigation measure can be accomplished within a reasonable period of time, taking into account economic, environmental, social, legal and technological factors. Project benefits that are appropriate to consider in the Statement of Overriding Considerations include the economic, legal, environmental, technological and social value of the project. The City may also consider region -wide or statewide environmental benefits. Substantial evidence in the entire record must justify the decision -making body's findings and its use of the Statement of Overriding Considerations. If the decision -making body makes a Statement of Overriding Considerations, the Statement must be included in the record of the project approval and it should be referenced in the Notice of Determination. 7.38 MITIGATION MONITORING OR REPORTING PROGRAM FOR EIR. When making findings regarding an EIR, the City must do all of the following: (a) Adopt a reporting or monitoring program to assure that mitigation measures that are required to mitigate or avoid significant effects on the environment will be implemented by the project proponent or other responsible party in a timely manner, in accordance with conditions of project approval; (b) Make sure all conditions and mitigation measures are feasible and fully enforceable through permit conditions, agreements, or other measures. Such permit conditions, 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-133 Local Guidelines for Implementing the California Environmental Quality Act (2019) ENVIRONMENTAL IMPACT REPORT agreements, and measures must be consistent with applicable constitutional requirements such as the "nexus" and "rough proportionality" standards established by case law; and (c) Specify the location and the custodian of the documents which constitute the record of proceedings upon which the City based its decision in the resolution certifying the EIR. There is no requirement that the reporting or monitoring program be circulated for public review; however, the City may choose to circulate it for public comments along with the Draft EIR. Any mitigation measures required to mitigate or avoid significant effects on the environment shall be adopted and made fully enforceable, such as by being imposed as conditions of project approval. The adequacy of a mitigation monitoring program is determined by the "rule of reason." This means that a mitigation monitoring program does not need to provide every imaginable measure. It needs only to provide measures that are reasonably feasible and that are necessary to avoid significant impacts or to reduce the severity of impacts to a less -than -significant level. The mitigation monitoring or reporting program shall be designed to assure compliance with the mitigation measures during the implementation and construction of the project. If a Responsible Agency or Trustee Agency has required that certain conditions be incorporated into the project, the City may request that agency to prepare and submit a proposed reporting or monitoring program. The City shall also require that, prior to the close of the public review period for a Draft EIR, the Responsible or Trustee Agency submit detailed performance objectives for mitigation measures, or refer the City to appropriate, readily available guidelines or reference documents. Any mitigation measures submitted to the City by a Responsible or Trustee Agency shall be limited to measures that mitigate impacts to resources that are within the Responsible or Trustee Agency's authority. When a project is of statewide, regional, or area -wide significance, any transportation information resulting from the reporting or monitoring program required to be adopted by the City shall be submitted to the regional transportation planning agency where the project is located and to the Department of Transportation. The transportation planning agency and the Department of Transportation are required by law to adopt guidelines for the submittal of these reporting or monitoring programs, so the City may wish to tailor its submittal to such guidelines. Local agencies have the authority to levy fees sufficient to pay for this program. Therefore, the City may impose a program to charge project proponents fees to cover actual costs of program processing and implementation. The City may delegate reporting or monitoring responsibilities to an agency or to a private entity that accepts the delegation; however, until mitigation measures have been completed, the City remains responsible for ensuring that implementation of the mitigation measures occurs in accordance with the program. The City may choose whether its program will monitor mitigation, report on mitigation, or both. "Reporting" is defined as a written compliance review that is presented to the Board or an authorized staff person. A report may be required at various stages during project implementation or upon completion of the mitigation measure. Reporting is suited to projects 2019 City of Santa Ana Local Guidelines 7-32 ®Best Best & Krieger LLP 75D-134 Local Guidelines for Implementing the California Environmental Quality Act (2019) ENVIRONMENTAL IMPACT REPORT that have readily measurable or quantitative mitigation measures or that already involve regular review. "Monitoring" is generally an ongoing or periodic process of project oversight. Monitoring is suited to projects with complex mitigation measures that may exceed the expertise of the City to oversee, are expected to be implemented over a period of time, or require careful implementation to assure compliance. At its discretion, the City may adopt standardized policies and requirements to guide individually adopted programs. Standardized policies or requirements for monitoring and reporting may describe, but are not limited to: (a) The relative responsibilities of various departments within the City for various aspects of the program; (b) The responsibilities of the project proponent; (c) Guidelines adopted by the City to govern preparation of programs; (d) General standards for determining project compliance with the mitigation measures and related conditions of approval; (e) Enforcement procedures for noncompliance, including provisions for administrative appeal; and/or (f) A process for informing the Board and staff of the relative success of mitigation measures and using those results to improve future mitigation measures. When a project is of statewide, regional, or area -wide importance, any transportation information generated by a mitigation monitoring or reporting program must be submitted to the transportation planning agency in the region where the project is located, as well as to the Department of Transportation. 7.39 NOTICE OF DETERMINATION. After approval of a project for which the City is the Lead Agency, Staff shall cause a Notice of Determination (Form "F") to be prepared, filed, and posted. The Notice of Determination shall include the following information: (a) An identification of the project, including its common name, where possible, and its location. If the notice of determination is filed with the State Clearinghouse, the State Clearinghouse identification number for the draft EIR shall be provided. (b) A brief description of the project; (c) The City's name and the applicant's name (if any). If different from the applicant, the Notice of Determination shall further provide, if applicable, the identity of the person undertaking the project that is supported, in whole or in part, through contracts, grants, subsidies, loans, or other forms of assistance from one or more public agencies, or the identity of the person receiving a lease, permit, license, certificate, or other entitlement for use from one or more public agencies. (d) The date when the City approved the project; (e) Whether the project in its approved form with mitigation will have a significant effect on the environment; 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-135 Local Guidelines for Implementing the California Environmental Quality Act (2019) ENVIRONMENTAL MIPACT REPORT (f) A statement that an EIR was prepared and certified pursuant to the provisions of CEQA; (g) Whether mitigation measures were made a condition of the approval of the project, and whether a mitigation monitoring plan/program was adopted; (h) Whether findings were made and/or whether a Statement of Overriding Considerations was adopted for the project; and (i) The address where a copy of the EIR (with comments and responses) and the record of project approval may be examined by the general public. The Notice of Determination shall be filed with the Clerk of each county in which the project will be located within five (5) working days of project approval. (To determine the fees that must be paid with the filing of the Notice of Determination, see Local Guidelines Section 7.42 and the Staff Summary of the CEQA Process.) The County Clerk is required to post the Notice of Determination within twenty-four (24) hours of receipt. The Notice must be posted in the office of the Clerk for a minimum of thirty (30) days. Thereafter, the Clerk shall return the notice to the City with a notation of the period it was posted. The City shall retain the notice for not less than twelve (12) months. Simultaneously with the filing of the Notice of Determination with the Clerk, Staff shall cause a copy of such Notice to be posted at City Offices. If the project requires discretionary approval from a state agency, the Notice of Determination shall also be filed with OPR within five (5) working days of project approval, along with proof that the City has paid the County Clerk the DFW fee or a completed form from DFW documenting DFW's determination that the project will have no effect on fish and wildlife. (If the City submits the Notice of Determination in person, the City may bring an extra copy to be date stamped by OPR.) When a request is made for a copy of the Notice of Determination prior to the date on which the City approves the project, the copy must be mailed, first class postage prepaid, within five (5) days of the City's approval. If such a request is made following the City's approval of the project, then the copy should be mailed in the same manner as soon as possible. The recipients of such documents may be charged a fee reasonably related to the cost of providing the service. The City may make copies of filed notices available in electronic format on the Internet. Such electronic notices, if provided, are in addition to the posting requirements of the CEQA Guidelines and the Public Resources Code. For projects with more than one phase, Staff shall file a Notice of Determination for each phase requiring a discretionary approval. The filing and posting of a Notice of Determination with the Clerk, and, if necessary, with OPR, usually starts a thirty (30) day statute of limitations on court challenges to the approval under CEQA. When separate notices are filed for successive phases of the same overall project, the thirty (30) day statute of limitation to challenge the subsequent phase begins to run when the second notice is filed. Failure to file the Notice may result in a one hundred eighty (180) day statute of limitations. 2019 City of Santa Ana Local Guidelines 7-34 ©Best Best & Krieger LLP 75D-136 Local Guidelines for Implementing the California Environmental Ouality Act (2019) ENVIRONMENTAL IMPACT REPORT 7.40 DISPOSITION OF A FINAL EIR. The City shall file a copy of the Final EIR with the appropriate planning agency of any city or county where significant effects on the environment may occur. The City shall also retain one or more copies of the Final EIR as a public record for a reasonable period of time. Finally, for private projects, the City may require that the project applicant provide a copy of the certified Final EIR to each Responsible Agency. 7.41 PRIVATE PROJECT COSTS. For private projects, the person or entity proposing to carry out the project shall be charged a reasonable fee to recover the estimated costs incurred by the City in preparing, circulating, and filing the Draft and Final EIRs, as well as all publication costs incident thereto. 7.42 FILING FEES FOR PROJECTS THAT AFFECT WILDLIFE RESOURCES. At the time a Notice of Determination for an EIR is filed with the County or Counties in which the project is located, a fee of $3,271.00, or the then applicable fee, shall be paid to the Clerk for projects that will adversely affect fish or wildlife resources. These fees are collected by the Clerk on behalf of DFW. Only one filing fee is required for each project unless the project is tiered or phased and separate environmental documents are prepared. For projects where Responsible Agencies file separate Notices of Determination, only the Lead Agency is required to pay the fee. Note: County Clerks are authorized to charge a documentary handling fee for each project in addition to the Fish and Wildlife fees specified above. Refer to the Index in the Staff Summary to help determine the correct total amount of fees applicable to the project. For private projects, the City should pass these costs on to the project applicant No fees are required for projects with "no effect" on fish or wildlife resources or for certain projects undertaken by the DFW and implemented through a contract with a non-profit entity or local government agency. (See Local Guidelines Section 6.24 for more information regarding a "no effect" determination.) 2019 City of Santa Ana Local Guidelines QBest Best & Krieger LLP 75D-137 Local Guidelines for Implementing the California Environmental Quality Act (2019) TYPES OF EIRS 8. TYPES OF EIRS 8.01 EIRS GENERALLY. This chapter describes a number of examples of various EIRs tailored to different situations. All of these types of EIRs must meet the applicable requirements of Chapter 7 of these Local Guidelines. 8.02 TIERING. (a) Tiering Generally "Tiering" refers to using the analysis of general matters contained in a previously certified broader EIR in later EIRs, Negative Declarations, or Mitigated Negative Declarations prepared for narrower projects. The later EIR, Negative Declaration, or Mitigated Negative Declaration may incorporate by reference the general discussions from the broader EIR and may concentrate solely on the issues specific to the later project. An Initial Study shall be prepared for the later project and used to determine whether a previously certified EIR may be used and whether new significant effects should be examined. Tiering does not excuse the City from adequately analyzing reasonably foreseeable significant environmental effects of a project, nor does it justify deferring analysis to a later tier EIR, Negative Declaration, or Mitigated Negative Declaration. However, the level of detail contained in a first -tier EIR need not be greater than that of the program, plan, policy, or ordinance being analyzed. When the City is using the tiering process in connection with an EIR for a large-scale planning approval, such as a general plan or component thereof (e.g., an area plan, specific plan or community plan), the development of detailed, site -specific information may not be feasible. Such site -specific information can be deferred, in many instances, until such time as the Lead Agency prepares a future environmental document in connection with a project of a more limited geographical scale, as long as deferral does not prevent adequate identification of significant effects of the planning approval at hand. (b) Identifying New Significant Impacts. When assessing whether there is a new significant cumulative effect for purposes of a subsequent tier environmental document, the Lead Agency shall consider whether the incremental effects of the project would be considerable when viewed in the context of past, present, and probable future projects. A Lead Agency may use only a valid CEQA document as a first -tier document. Accordingly, the City, in its role as Lead Agency, should carefully review the first -tier environmental document to determine whether or not the statute of limitations for challenging the document has run. If the statute of limitations has not expired, the City should use the first - tier document with caution and pay careful attention to the legal status of the document. If the first -tier document is subsequently invalidated, any later environmental document may also be defective. 2019 City of Santa Ana Local Guidelines 8-1 OBest Best & Krieger LLP 75D-138 Local Guidelines for Implementing the California Environmental Ouality Act (2019) TYPES OF EIRS (c) Infill Projects and Tiering Certain "infill" projects may tier off of a previously certified EIR. An "infilP' project is defined as a project with residential, retail, and/or commercial uses, a transit station, a school, or a public office building. It must be located in an urban area on a previously developed site or on an undeveloped site that is surrounded by developed uses. The project must be either consistent with land use planning strategies that achieve greenhouse gas ("GHG") emission reduction targets, feature a small walkable community project, or where a sustainable communities or alternative planning strategy has not yet been adopted for the area, include a residential density of at least 20 units per acre or a floor area ratio of at least 0.75. The project must also meet a number of standards related to energy efficiency that are not yet defined but which SB 226 directs the Office of Planning and Research to prepare. If an EIR was certified for a planning level decision by a city or county (such as a General Plan or Specific Plan), the scope of the CEQA review for a later "infilP' project can be limited to those effects on the environment that: 1) are specific to the project or to the project site and were not addressed as significant effects in the prior EIR; or 2) substantial new information shows will be more significant than described in the prior EIR. When a project meets the definition of "infilP' and either of the above conditions exist but a Mitigated Negative Declaration cannot be adopted, then the subsequent EIR for such a project need not consider alternative locations, densities, and building intensities or growth -inducing impacts. (d) Statement of Overriding Considerations. A Lead Agency may also tier off of a previously prepared Statement of Overriding Considerations if certain conditions are met. (See Local Guidelines Section 7.37.) 8.03 PROJECT EIR. The most common type of EIR examines the environmental impacts of a specific development project and focuses primarily on the changes in the environment that would result from the development project. If the EIR for a redevelopment plan is a Project EIR, all public and private activities or undertakings pursuant to or in furtherance of the Redevelopment Plan shall constitute a single project, which shall be deemed approved at the time of the adoption of the Redevelopment Plan. Although the City will probably not act as a Lead Agency for a Redevelopment Plan, the City may act as a Responsible Agency. (State Guideline Section 15180.) 8.04 SUBSEQUENT EIR. A Subsequent EIR is required when a previous EIR has been prepared and certified, or a Negative Declaration or Mitigated Negative Declaration has been adopted, for a project and at least one of the three following situations occur: 2019 City of Santa Ana Local Guidelines 8-2 ®Best Best & Krieger LLP 75D-139 Local Guidelines for Implementing the California Environmental Ouality Act (2019) TYPES OF EIRS (a) Substantial changes are proposed in the project which will require major revisions of a previous EIR due to the identification of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; (b) Substantial changes occur with respect to the circumstances under which the project is to be undertaken which will require major revisions of a previous EIR due to the identification of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; or (c) New information, which was not known and could not have been known with the exercise of reasonable diligence at the time the previous EIR was certified as complete or the Negative Declaration/Mitigated Negative Declaration was adopted, becomes available and shows any of the following: (1) the project will have one or more significant effects not discussed in a previous EIR, Negative Declaration, or Mitigated Negative Declaration; (2) significant effects previously examined will be substantially more severe than shown in a previous EIR; (3) mitigation measures or alternatives previously found not to be feasible are in fact feasible and would substantially reduce one or more significant effects, but the project proponent declines to adopt the mitigation measures or alternatives; or (4) mitigation measures or alternatives which were not considered in a previous EIR would substantially lessen one or more significant effects on the environment, but the project proponent declines to adopt the mitigation measures or alternatives. A Subsequent EIR must receive the same circulation and review as the previous EIR received. In instances where the City is evaluating a modification or revision to an existing use permit, the City may consider only those environmental impacts related to the changes between what was allowed under the old permit and what is requested under the new permit. Only if these differential impacts fall within the categories described above may the City require additional environmental review. When the City is considering approval of a development project that is consistent with a general plan for which an EIR was completed, another EIR is required only if the project causes environmental effects peculiar to the parcel which were not addressed in the prior EIR or substantial new information shows the effects peculiar to the parcel will be more significant than described in the prior EIR. 8.05 SUPPLEMENTAL EIR. The City may choose to prepare a Supplemental EIR, rather than a Subsequent EIR, if any of the conditions described in Local Guidelines Section 8.04 have occurred but only minor additions or changes would be necessary to make the previous EIR adequately apply to the project in the changed situation. To assist the City in making this determination, the decision - making body should request an Initial Study and/or a recommendation by Staff. The 2019 City of Santa Ana Local Guidelines OBest Best & Krieger LLP 75D-140 Local Guidelines for hnplementing the California Environmental Quality Act (2019) TYPES OF EIRS Supplemental EIR need contain only the information necessary to make the previous EIR adequate for the project as revised. A Supplemental EIR shall be given the same kind of notice and public review as is given to a Draft EIR but may be circulated by itself without recirculating the previous EIR. When the decision -making body decides whether to approve the project, it shall consider the previous EIR as revised by the Supplemental EIR. Findings shall be made for each significant effect identified in the Supplemental EIR. 8.06 ADDENDUM TO AN EIR. The City shall prepare an Addendum to a previously certified EIR, rather than a Subsequent or Supplemental EIR, only if changes or additions to the EIR are necessary, but none of the conditions described in Local Guidelines Section 8.04 or 8.05 calling for preparation of a Subsequent or Supplemental EIR have occurred. Since significant effects on the environment were addressed by findings in the original EIR, no new findings are required in the Addendum. An Addendum to an EIR need not be circulated for public review but should be included in or attached to the Final EIR. The decision -making body shall consider the Addendum with the Final EIR prior to making a decision on a project. A brief explanation of the decision not to prepare a Subsequent EIR or a Supplemental EIR should be included in the Addendum, the Lead Agency's findings on the project, or elsewhere in the record. This explanation must be supported by substantial evidence. 8.07 STAGED EIR. When a large capital project will require a number of discretionary approvals from governmental agencies and one of the approvals will occur more than two years before construction will begin, a Staged EIR may be prepared. The Staged EIR covers the entire project in a general form or manner. A Staged EIR should evaluate a proposal in light of current and contemplated plans and produce an informed estimate of the environmental consequences of an entire project. The particular aspect of the project before the City for approval shall be discussed with a greater degree of specificity. When a Staged EIR has been prepared, a Supplemental EIR shall be prepared when a later approval is required for the project and the information available at the time of the later approval would permit consideration of additional environmental impacts, mitigation measures, or reasonable alternatives to the project. 8.08 PROGRAM EIR. A Program EIR is an EIR that may be prepared on an integrated series of actions that are related either: (a) Geographically; (b) As logical parts in a chain of contemplated actions; 2019 City of Smta Ana Local Guidelines CBest Best & Krieger LLP 75D-141 Local Guidelines for Implementing the California Environmental Quality Act (2019) TYPES OF EIRS (c) In connection with the issuance of rules, regulations, plans or other general criteria to govern the conduct of a continuing program; or (d) As individual projects carried out under the same authorizing statutory or regulatory authority and having generally similar environmental effects that can be mitigated in similar ways. (State CEQA Guidelines Section, 15168.) An advantage of using a Program EIR is that it can "[alltow the Lead Agency to consider broad policy alternatives and program wide mitigation measures at an early time when the agency has greater flexibility to deal with basic problems or cumulative impacts." (State CEQA Guidelines Section 15168(b)(4).) A Program EIR is distinct from a Project EIR, as a Project EIR is prepared for a specific project and must examine in detail site -specific considerations. Program EIRs are commonly used in conjunction with the process of tiering. Tiering is the coverage of general matters in broader EIRs (such as on general plans or policy statements) with subsequent narrower EIRs. (State CEQA Guidelines Section 15385; see also Local Guidelines Sections 8.02 and 11.73.) Tiering is proper "when it helps a public agency to focus upon the issues ripe for decision at each level of environmental review and in order to exclude duplicative analysis of environmental effects examined in previous environmental impact reports." (Pub. Res. Code, § 21093(a).) For example, the California Supreme Court has ruled that "CEQA does not mandate that a first -tier program EIR identify with certainty particular sources of water for second -tier projects that will be further analyzed before implementation during later stages of the program. Rather, identification of specific sources is required only at the second -tier stage when specific projects are considered." (In re Bay -Delta etc. (2008) 43 Cal. 4th 1143.) Subsequent activities in the program must be examined in light of the Program EIR to determine whether additional environmental documents must be prepared. Additional environmental review documents must be prepared if the proposed later project may arguably cause significant adverse effects on the environment. 8.09 USE OF A PROGRAM EIR WITH SUBSEQUENT FIRS AND NEGATIVE DECLARATIONS. A Program EIR can be used to simplify the task of preparing environmental documents on later activities in the program. The Program EIR can: (a) Provide the basis for an Initial Study to determine whether the later activity may have any significant effects; (b) Be incorporated by reference to deal with regional influences, secondary effects, cumulative impacts, broad alternatives and other factors that apply to the program as a whole; or (c) Focus an EIR on a later activity to permit discussion solely of new effects which had not been considered before. If a Program EIR is prepared for a redevelopment plan, subsequent activities in the redevelopment program will be subject to review if they would have effects that were not examined in the Program EIR. Where the later activities involve site -specific operations, the 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-142 Local Guidelines for Implementing the California Environmental Ouality Act (2019) TYPES OF EiRS City should use a written checklist or similar device to document the evaluation of the site and the proposed activity to determine whether the environmental effects of the operation were within the scope of the Program EIR. If a later activity would have effects that were not examined in the Program EIR, a new Initial Study would need to be prepared leading to an EIR, Negative Declaration, or Mitigated Negative Declaration. That later analysis may tier from the Program EIR as provided in State CEQA Guidelines Section 15152. If the City finds that no Subsequent EIR would be required, the City can approve the activity as being within the scope of the project covered by the Program EIR, and no new environmental document is required. (See Local Guidelines Section 8.04.) Whether a later activity is within the scope of a Program EIR is a factual question that the Lead Agency determines based on substantial evidence in the record. Factors that the Lead Agency may consider in making that determination include, but are not limited to, consistency of the later activity with the type of allowable land use, overall planned density and building intensity, geographic area analyzed for environmental impacts, and covered infrastructure, as described in the Program EIR. 8.10 USE OF AN EIR FROM AN EARLIER PROJECT. A single EIR may be used to describe more than one project when the projects involve substantially identical environmental impacts. Any environmental impacts peculiar to one of the projects must be separately set forth and explained. 8.11 MASTER EIR. A Master EIR is an EIR which may be prepared for: (a) A general plan (including elements and amendments); (b) A specific plan; (c) A project consisting of smaller individual projects to be phased; (d) A regulation to be implemented by subsequent projects; (e) A project to be carried out pursuant to a development agreement; (0 A project pursuant to or furthering a redevelopment plan; (g) A state highway or mass transit project subject to multiple reviews or approvals; or (h) A regional transportation plan or congestion management plan. A Master EIR must do both of the following: (a) Describe and present sufficient information about anticipated subsequent projects within its scope, including their size, location, intensity, and scheduling; and (b) Preliminarily describe potential impacts of anticipated subsequent projects for which insufficient information is available to support a full impact assessment. The City and Responsible Agencies identified in the Master EIR may use the Master EIR to limit environmental review of subsequent projects. However, the Lead Agency for the subsequent project must prepare an Initial Study to determine whether the subsequent project and its significant environmental effects were included in the Master EIR. If the Lead Agency for the subsequent project finds that the subsequent project will have no additional significant 2019 City of Santa Ana Local Guidelines 8-6 ©Best Best & Krieger LLP 75D-143 Local Guidelines for Implementing the California Environmental Quality Act (2019) TYPES OF EIRS environmental effect and that no new mitigation measures or alternatives may be required, it may prepare written findings to that effect without preparing a new environmental document. When the Lead Agency makes this finding, it must provide public notice of the availability of its proposed finding for public review and comment in the same manner as if it were providing public notice of the availability of a draft EIR. (See Sections 15177(d) and 15087 of the State CEQA Guidelines and Section 7.25 of these Local Guidelines.) A previously certified Master EIR cannot be relied upon to limit review of a subsequent project if: (a) A project not identified in the certified Master EIR has been approved and that project may affect the adequacy of the Master EIR for the subsequent project now under consideration; or (b) The Master EIR was certified more than five (5) years before the filing of an application for the subsequent project, unless the City reviews the adequacy of the Master EIR and: (1) Finds that, since the Master EIR was certified, no substantial changes have occurred that would cause the subsequent project to have significant environmental impacts, and there is no new information that the subsequent project would have significant environmental impacts; or (2) Prepares an Initial Study and either certifies a Subsequent or Supplemental EIR or adopts a Mitigated Negative Declaration that addresses any substantial changes or new information that would cause the subsequent project to have potentially significant environmental impacts. The certified subsequent or supplemental EIR must either be incorporated into the previously certified Master EIR or the City must identify any deletions, additions or other modifications to the previously certified Master EIR in the new document. The City may include a section in the subsequent or supplemental EIR that identifies these changes to the previously certified Master EIR. When the Lead Agency cannot find that the subsequent project will have no additional significant environmental effect and no new mitigation measures or alternatives will be required, it must prepare either a Mitigated Negative Declaration or an EIR for the subsequent project. 8.12 FOCUSED EIR. A Focused EIR is an EIR for a subsequent project identified in a Master EIR. It may be used only if the City finds that the Master EIR's analysis of cumulative, growth -inducing, and irreversible significant environmental effects is adequate for the subsequent project. The Focused EIR must incorporate by reference the Master EIR. The Focused EIR must analyze additional significant environmental effects not addressed in the Master EIR and any new mitigation measures or alternatives not included in the Master EIR. "Additional significant effects on the environment" means those project -specific effects on the environment that were not addressed as significant effects on the environment in the Master EIR. 2019 City of Santa Ana Local Guidelines 8-7 ®Best Best & Krieger LLP 75D-144 Local Guidelines for Implementing the California Environmental Ouality Act (2019) TYPES OF EIRS The Focused EIR must also examine the following: (a) Significant effects discussed in the Master EIR for which substantial new information exists that shows those effects may be more significant than described in the Master EIR; (b) Those mitigation measures found to be infeasible in the Master EIR for which substantial new information exists that shows the effects may be more significant than described in the Master EIR; and (c) Those mitigation measures found to be infeasible in the Master EIR for which substantial new information exists that shows those measures may now be feasible. The Focused EIR need not examine the following effects: (a) Those that were mitigated through Master EIR mitigation measures; or (b) Those that were examined in the Master EIR in sufficient detail to allow project -specific mitigation or for which mitigation was found to be the responsibility of another agency. A Focused EIR may be prepared for a multifamily residential project not exceeding 100 units or a mixed use residential project not exceeding 100,000 square feet even though the project was not identified in a Master EIR, if the following conditions are met: (a) The project is consistent with a general plan, specific plan, community plan, or zoning ordinance for which an EIR was prepared within five (5) years of the Focused EIR's certification; (b) The project does not require the preparation of a Subsequent or Supplemental EIR; and (c) The parcel is surrounded by immediately contiguous urban development, was previously developed with urban uses, or is within one-half mile of a rail transit station. A Focused EIR for these projects should be limited to potentially significant effects that are project -specific and/or which substantial new information shows will be more significant than described in the Master EIR. No discussion shall be required of alternatives to the project, cumulative impacts of the project, or the growth -inducing impacts of the project. (See State CEQA Guidelines Section 15179.5.) 8.13 SPECIAL REQUIREMENTS FOR REDEVELOPMENT PROJECTS. An EIR for a redevelopment plan may be a Master EIR, Program EIR or Project EIR. An EIR for a redevelopment plan must specify whether it is a Master EIR, a Program EIR or a Project EIR. Normally, the City will not be a Lead Agency for a redevelopment plan. However, if the City is a Responsible Agency on such a project, the City should endeavor to ensure that the county and/or applicable city as the case may be, as Lead Agency, analyzes these impacts in accordance with CEQA. If a Program EIR is prepared for a redevelopment plan, subsequent activities in the redevelopment program will be subject to review if they would have effects that were not examined in the Program EIR. The Lead Agency should use a written checklist or similar device to document the evaluation of the site and the proposed activity to determine whether the environmental effects of the operation were indeed covered in the Program EIR. If the Lead Agency finds that no new effects could occur, no new mitigation measures would be required or 2019 City of Santa Ana Local Guidelines 8-8 ®Best Best & Krieger LLP 75D-145 Local Guidelines for hnplementing the California Environmental Quality Act (2019) TYPES OF E. c that State CEQA Guidelines Sections 15162 and 15163 do not otherwise apply, the Lead Agency can approve the activity as being within the scope of the project covered by the Program EIR, and no new environmental document is required. If the EIR for a redevelopment plan is a Project EIR, all public and private activities or undertakings pursuant to or in furtherance of the Redevelopment Plan shall constitute a single project, which shall be deemed approved at the time of the adoption of the Redevelopment Plan. Once certified, no subsequent EIRs will be needed unless required by State CEQA Guidelines sections 15162 or 15163. (State CEQA Guidelines Section 15180.) If a Master EIR is prepared for a redevelopment plan, subsequent projects will be subject to review if they would have effects that were not examined in the Master EIR. If no new effects could occur or no new mitigation measures would be required, the Lead Agency can approve the activity as being within the scope of the project covered by the Master EIR, and no new environmental document is required. 2019 City of Santa Ana Local Guidelines 8-9 ®Best Best & Krieger LLP 75D-146 Local Guidelines for Implementing the California Environmental Ouality Act (2019) AFFORDABLE HOUSING 9. AFFORDABLE HOUSING 9.01 STREAMLINED, MINISTERIAL APPROVAL PROCESS FOR AFFORDABLE HOUSING PROJECTS The legislature has provided reforms and incentives to facilitate and expedite the approval and construction of affordable housing. (a) An applicant may submit an application for a development that is subject to the streamlined, ministerial approval process and is not subject to a conditional use permit if the development satisfies all of the following objective planning standards: (i) The development is a multifamily housing development that contains two or more residential units. (ii) The development is located on a site that satisfies the following: (A) A site that is a legal parcel or parcels located in a city if, and only if, the city boundaries include some portion of either an urbanized area or urban cluster, as designated by the United States Census Bureau, or, for unincorporated areas, a legal parcel or parcels wholly within the boundaries of an urbanized area or urban cluster, as designated by the United States Census Bureau. (B) A site in which at least 75 percent of the perimeter of the site adjoins parcels that are developed with urban uses. For the purposes of this section, parcels that are only separated by a street or highway shall be considered to be adjoined. (C) A site that is zoned for residential use or residential mixed -use development, or has a general plan designation that allows residential use or a mix of residential and nonresidential uses, with at least two-thirds of the square footage of the development designated for residential use. (iii) If the development contains units that are subsidized, the development proponent already has recorded, or is required by law to record, a land use restriction for the following applicable minimum durations: (A) Fifty-five years for units that are rented. (B) Forty-five years for units that are owned. (iv) The development satisfies both of the following: (A) The development is located in a locality that the department has determined is subject to this subparagraph on the basis that the number of units that have been issued building permits is less than the locality's share of the regional housing needs, by income category, for that reporting period. A locality 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-147 Local Guidelines for Implementing the California Environmental Quality Act (2019) AFFORDABLE HOUSING shall remain eligible under this subparagraph until the department's determination for the next reporting period. A locality shall be subject to this subparagraph if it has not submitted an annual housing element report to the department pursuant to paragraph (2) of subdivision (a) of Section 65400 for at least two consecutive years before the development submitted an application for approval under this section. (B) The development is subject to a requirement mandating a minimum percentage of below market rate housing based on one of the following: (1) The locality did not submit its latest production report to the department by the time period required by Government Code section 65400, or that production report reflects that there were fewer units of above moderate -income housing approved than were required for the regional housing needs assessment cycle for that reporting period. In addition, if the project contains more than 10 units of housing, the project seeking approval dedicates a minimum of 10 percent of the total number of units to housing affordable to households making below 80 percent of the area median income. If the locality has adopted a local ordinance that requires that greater than 10 percent of the units be dedicated to housing affordable to households making below 80 percent of the area median income, that zoning ordinance applies. (2) The locality did not submit its latest production report to the department by the time period required by Government Code Section 65400, or that production report reflects that there were fewer units of housing affordable to households making below 80 percent of the area median income that were issued building permits than were required for the regional housing needs assessment cycle for that reporting period, and the project seeking approval dedicates 50 percent of the total number of units to housing affordable to households making below 80 percent of the area median income, unless the locality has adopted a local ordinance that requires that greater than 50 percent of the units be dedicated to housing affordable to households making below 80 percent of the area median income, in which case that ordinance applies. (3) The locality did not submit its latest production report to the department by the time period required by Government Code Section 65400, or if the production report reflects that there were fewer units of housing affordable to any income level described in clause (i) or (ii) that were issued building permits than were required for the regional housing needs assessment cycle for that reporting period, the project seeking approval may choose between utilizing clause (i) or (ii). (v) The development, excluding any additional density or any other concessions, incentives, or waivers of development standards granted pursuant to the 2019 City of Santa Ana Local Guidelines OBest Best & Krieger LLP 75D-148 Local Guidelines for Implementing the California Environmental Ouality Act (2019) AFFORDABLE HOUSING Density Bonus Law in Government Code section 65915, is consistent with objective zoning standards and objective design review standards in effect at the time that the development is submitted to the local government pursuant to this section. For purposes of this paragraph, "objective zoning standards" and "objective design review standards" mean standards that involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official prior to submittal. These standards may be embodied in alternative objective land use specifications adopted by a city or county, and may include, but are not limited to, housing overlay zones, specific plans, inclusionary zoning ordinances, and density bonus ordinances, subject to the following: (A) A development shall be deemed consistent with the objective zoning standards related to housing density, as applicable, if the density proposed is compliant with the maximum density allowed within that land use designation, notwithstanding any specified maximum unit allocation that may result in fewer units of housing being permitted. (B) In the event that objective zoning, general plan, or design review standards are mutually inconsistent, a development shall be deemed consistent with the objective zoning standards pursuant to this section if the development is consistent with the standards set forth in the general plan. (vi) The development is not located on a site that is any of the following: (A) A coastal zone, as defined in Division 20 (commencing with Section 30000) of the Public Resources Code. (B) Either prime farmland or farmland of statewide importance, as defined pursuant to United States Department of Agriculture land inventory and monitoring criteria, as modified for California, and designated on the maps prepared by the Farmland Mapping and Monitoring Program of the Department of Conservation, or land zoned or designated for agricultural protection or preservation by a local ballot measure that was approved by the voters of that jurisdiction. (C) Wetlands, as defined in the United States Fish and Wildlife Service Manual. (D) Within a very high fire hazard severity zone, as determined by the Department of Forestry and Fire Protection pursuant to Section 51178, or within a high or very high fire hazard severity zone as indicated on maps adopted by the Department of Forestry and Fire Protection pursuant to Section 4202 of the Public Resources Code. This subparagraph does not apply to sites excluded from the specified hazard zones by a local agency, pursuant to subdivision (b) of Government Code Section 51179, or sites that have adopted fire hazard mitigation 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-149 Local Guidelines for Implementing the California Environmental Ouality Act (2019) AFFORDABLE HOUSING measures pursuant to existing building standards or state fire mitigation measures applicable to the development. (E) A hazardous waste site that is listed pursuant to Government Code section 65962.5 or a hazardous waste site designated by the Department of Toxic Substances Control pursuant to Section 25356 of the Health and Safety Code, unless the Department of Toxic Substances Control has cleared the site for residential use or residential mixed uses. (F) Within a delineated earthquake fault zone as determined by the State Geologist in any official maps published by the State Geologist, unless the development complies with applicable seismic protection building code standards adopted by the California Building Standards Commission under the California Building Standards Law, Health and Safety Code section 18901, and by any local building department under Chapter 12.2 (commencing with Section 8875) of Division 1 of Title 2 of the Government Code. (G) Within a flood plain as determined by maps promulgated by the Federal Emergency Management Agency, unless the development has been issued a flood plain development permit pursuant to Code of Federal Regulations section 59.1. (H) Within a floodway as determined by maps promulgated by the Federal Emergency Management Agency, unless the development has received a no -rise certification in accordance with Code of Federal Regulations section 60.3(d)(3). (1) Lands identified for conservation in an adopted natural community conservation plan pursuant to the Natural Community Conservation Planning Act, Fish and Game Code section 2800, habitat conservation plan pursuant to the federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et seq.), or other adopted natural resource protection plan. (J) Habitat for protected species identified as candidate, sensitive, or species of special status by state or federal agencies, fully protected species, or species protected by the federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et seq.), the California Endangered Species Act, Fish and Game Code section 2050, or the Native Plant Protection Act, Fish and Game Code section 1900. (K) Lands under conservation easement. (vii) The development is not located on a site where any of the following apply: (A) The development would require the demolition of the following types of housing: 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-150 Local Guidelines for Implementing the California Environmental Ouality Act (2019) AFFORDABLE HOUSING (1) Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income. (2) Housing that is subject to any form of rent or price control through a public entity's valid exercise of its police power. (3) Housing that has been occupied by tenants within the past 10 years. (B) The site was previously used for housing that was occupied by tenants that was demolished within 10 years before the development proponent submits an application under this section. (C) The development would require the demolition of a historic structure that was placed on a national, state, or local historic register. (D) The property contains housing units that are occupied by tenants, and units at the property are, or were, subsequently offered for sale to the general public by the subdivider or subsequent owner of the property. (viii) The applicant has done both of the following, as applicable: (A) Certified to the locality that either of the following is true, as applicable: (1) The entirety of the development is a public work for purposes of Labor Code section 1720. (2) If the development is not in its entirety a public work, that all construction workers employed in the execution of the development will be paid at least the general prevailing rate of per diem wages for the type of work and geographic area, as determined by the Director of Industrial Relations pursuant to Labor Code sections 1773 and 1773.9, except that apprentices registered in programs approved by the Chief of the Division of Apprenticeship Standards may be paid at least the applicable apprentice prevailing rate. If the development is subject to this subparagraph, then for those portions of the development that are not a public work all of the following shall apply: (I) The development proponent shall ensure that the prevailing wage requirement is included in all contracts for the performance of the work. (II) All contractors and subcontractors shall pay to all construction workers employed in the execution of the work at least the general prevailing rate of per diem wages, except that apprentices 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-151 Local Guidelines for Implementing the California Environmental Ouality Act (2019) AFFORDABLE HOUSING registered in programs approved by the Chief of the Division of Apprenticeship Standards may be paid at least the applicable apprentice prevailing rate. (III) Except as provided in subsection (V), all contractors and subcontractors shall maintain and verify payroll records pursuant to Labor Code section 1776 and make those records available for inspection and copying as provided in therein. (IV) Except as provided in subsection (V), the obligation of the contractors and subcontractors to pay prevailing wages may be enforced by the Labor Commissioner through the issuance of a civil wage and penalty assessment pursuant to Labor Code section 1741, which may be reviewed pursuant to Labor Code section 1742, within 18 months after the completion of the development, by an underpaid worker through an administrative complaint or civil action, or by a joint labor-management committee though a civil action under Labor Code section 1771.2. If a civil wage and penalty assessment is issued, the contractor, subcontractor, and surety on a bond or bonds issued to secure the payment of wages covered by the assessment shall be liable for liquidated damages pursuant to Labor Code section 1742.1. (V) Subsections (III) and (IV) shall not apply if all contractors and subcontractors performing work on the development are subject to a project labor agreement that requires the payment of prevailing wages to all construction workers employed in the execution of the development and provides for enforcement of that obligation through an arbitration procedure. For purposes of this clause, "project labor agreement" has the same meaning as set forth in Public Contract Code section 2500(b)(1). (VI) Notwithstanding Labor Code section 1773.1, subdivision (c), the requirement that employer payments not reduce the obligation to pay the hourly straight time or overtime wages found to be prevailing shall not apply if otherwise provided in a bona fide collective bargaining agreement covering the worker. The requirement to pay at least the general prevailing rate of per diem wages does not preclude use of an alternative workweek schedule adopted pursuant to Labor Code section 511 or 514. (13)(1) For developments for which any of the following conditions apply, certified that a skilled and trained workforce shall be used to complete the development if the application is approved: (I) On and after January 1, 2018, until December 31, 2021, the development consists of 75 or more units that are not 100 percent 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-152 Local Guidelines for Implementing the California En ' onmenml Ouality Act (2019) AFFORDABLE HOUSING subsidized affordable housing and will be located within a jurisdiction located in a coastal or bay county with a population of 225,000 or more. (II) On and after January 1, 2022, until December 31, 2025, the development consists of 50 or more units that are not 100 percent subsidized affordable housing and will be located within a jurisdiction located in a coastal or bay county with a population of 225,000 or more. (III) On and after January 1, 2018, until December 31, 2019, the development consists of 75 or more units that are not 100 percent subsidized affordable housing and will be located within a jurisdiction with a population of fewer than 550,000 and that is not located in a coastal or bay county. (IV) On and after January 1, 2020, until December 31, 2021, the development consists of more than 50 units and will be located within a jurisdiction with a population of fewer than 550,000 and that is not located in a coastal or bay county. (V) On and after January 1, 2022, until December 31, 2025, the development consists of more than 25 units and will be located within a jurisdiction with a population of fewer than 550,000 and that is not located in a coastal bay county. (2) For purposes of this section, "skilled and trained workforce" has the same meaning as provided in the Public Contract Code section 2600. (3) If the development proponent has certified that a skilled and trained workforce will be used to complete the development and the application is approved, the following shall apply: (1) The applicant shall require in all contracts for the performance of work that every contractor and subcontractor at every tier will individually use a skilled and trained workforce to complete the development. (II) Every contractor and subcontractor shall use a skilled and trained workforce to complete the development. (III) Except as provided in subdivision (rV), the applicant shall provide to the locality, on a monthly basis while the development or contract is being performed, a report demonstrating compliance with Public Contract Code section 2600. A monthly report provided to the locality pursuant to this subclause shall be a public record under the California Public Records Act, Government Code section 6250 and shall be open to public inspection. An applicant that fails to provide a monthly 2019 City of Santa Ana Local Guidelines OBest Best & Krieger LLP 75D-153 Local Guidelines for Implementing the California Environmental Quality Act (2019) AFFORDABLE HOUSING report demonstrating compliance with Public Contract Code section 2600 shall be subject to a civil penalty of ten thousand dollars ($10,000) per month for each month for which the report has not been provided. Any contractor or subcontractor that fails to use a skilled and trained workforce shall be subject to a civil penalty of two hundred dollars ($200) per day for each worker employed in contravention of the skilled and trained workforce requirement. Penalties may be assessed by the Labor Commissioner within 18 months of completion of the development using the same procedures for issuance of civil wage and penalty assessments pursuant to Labor Code section 1741, and may be reviewed pursuant to the same procedures in Labor Code section 1742. Penalties shall be paid to the State Public Works Enforcement Fund. (IV) Subdivision (III) shall not apply if all contractors and subcontractors performing work on the development are subject to a project labor agreement that requires compliance with the skilled and trained workforce requirement and provides for enforcement of that obligation through an arbitration procedure. For purposes of this subparagraph, "project labor agreement' has the same meaning as set forth in Public Contract Code section 2500(b)(1). (C) Notwithstanding subparagraphs (A) and (13) above, a development that is subject to approval pursuant to this section is exempt from any requirement to pay prevailing wages or use a skilled and trained workforce if it meets both of the following: (1) The project includes 10 or fewer units. (2) The project is not a public work for purposes of Labor Code section 1720. (ix) The development did not or does not involve a subdivision of a parcel that is, or, notwithstanding this section, would otherwise be, subject to the Subdivision Map Act (Government Code section 66410, et seq.) or any other applicable law authorizing the subdivision of land, unless either of the following apply: (A) The development has received or will receive financing or funding by means of a low-income housing tax credit and is subject to the requirement that prevailing wages be paid pursuant to subparagraph (A) of paragraph (viii). (B) The development is subject to the requirement that prevailing wages be paid, and a skilled and trained workforce used, pursuant to paragraph (h). (x) The development shall not be upon an existing parcel of land or site that is governed under the Mobilehome Residency Law, Civil Code section 798, the Recreational Vehicle Park Occupancy Law, Civil Code section 799.20, the Mobilehome 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-154 Local Guidelines for Implementing the California Enviromuental Ouality Act (2019) AFFORDABLE HOUSING Parks Act, Health and Safety Code section 18200, or the Special Occupancy Parks Act, Health and Safety Code section 18860. (b) (i) If a local government determines that a development submitted pursuant to this section is in conflict with any of the objective planning standards specified in subdivision (a), it shall provide the development proponent written documentation of which standard or standards the development conflicts with, and an explanation for the reason or reasons the development conflicts with that standard or standards, as follows: (A) Within 60 days of submittal of the development to the local government pursuant to this section if the development contains 150 or fewer housing units. (B) Within 90 days of submittal of the development to the local government pursuant to this section if the development contains more than 150 housing units. (ii) If the local government fails to provide the required documentation pursuant to paragraph (1), the development shall be deemed to satisfy the objective planning standards specified in subdivision (a). (c) Any design review or public oversight of the development may be conducted by the local government's planning commission or any equivalent board or commission responsible for review and approval of development projects, or the city council or board of supervisors, as appropriate. That design review or public oversight shall be objective and be strictly focused on assessing compliance with criteria required for streamlined projects, as well as any reasonable objective design standards published and adopted by ordinance or resolution by a local jurisdiction before submission of a development application, and shall be broadly applicable to development within the jurisdiction. That design review or public oversight shall be completed as follows and shall not in any way inhibit, chill, or preclude the ministerial approval provided by this section or its effect, as applicable: (i) Within 90 days of submittal of the development to the local government pursuant to this section if the development contains 150 or fewer housing units. (ii) Within 180 days of submittal of the development to the local government pursuant to this section if the development contains more than 150 housing units. (d) (i) Notwithstanding any other law, a local government, whether or not it has adopted an ordinance governing parking requirements in multifamily developments, shall not impose parking standards for a streamlined development that was approved pursuant to this section in any of the following instances: (A) The development is located within one-half mile of public transit. 2019 City of Santa Ana Local Guidelines 9-9 CBest Best & Krieger LLP 75D-155 Local Guidelines for Implementing the California Environmental Ouality Act (2019) AFFORDABLE HOUSING (B) The development is located within an architecturally and historically significant historic district. (C) When on -street parking permits are required but not offered to the occupants of the development. (D) When there is a car share vehicle located within one block of the development. (ii) If the development does not fall within any of the categories described in paragraph (1), the local government shall not impose parking requirements for streamlined developments approved pursuant to this section that exceed one parking space per unit. (e) (i) If a local government approves a development pursuant to this section, then, notwithstanding any other law, that approval shall not expire if the project includes public investment in housing affordability, beyond tax credits, where 50 percent of the units are affordable to households making below 80 percent of the area median income. (ii) If a local government approves a development pursuant to this section and the project does not include 50 percent of the units affordable to households making below 80 percent of the area median income, that approval shall automatically expire after three years except that a project may receive a one-time, one-year extension if the project proponent can provide documentation that there has been significant progress toward getting the development construction ready, such as filing a building permit application. (iii) If a local government approves a development pursuant to this section, that approval shall remain valid for three years from the date of the final action establishing that approval and shall remain valid thereafter for a project so long as vertical construction of the development has begun and is in progress. Additionally, the development proponent may request, and the local government shall have discretion to grant, an additional one-year extension to the original three-year period. The local government's action and discretion in determining whether to grant the foregoing extension shall be limited to considerations and process set forth in this section. (0 A local government shall not adopt any requirement, including, but not limited to, increased fees or inclusionary housing requirements, that applies to a project solely or partially on the basis that the project is eligible to receive ministerial or streamlined approval pursuant to this section. (g) This section shall not affect a development proponent's ability to use any alternative streamlined by right permit processing adopted by a local government, including the provisions of Government Code section 65583.2(i). (h) For purposes of this section the following definitions shall apply: 2019 City of Santa Ana Local Guidelines 9-10 ®Best Best & Krieger LLP 75D-156 Local Guidelines for Implementing the California E ironmental0 ality Act(2019) AFFORDABLE HOUSING (1) "Department" means the Department of Housing and Community Development. (2) "Development proponent" means the developer who submits an application for streamlined approval pursuant to this section. (3) "Completed entitlements" means a housing development which has received all the required land use approvals or entitlements necessary for the issuance of a building permit. (4) "Locality" or "local government" means a city, including a charter city, a county, including a charter county, or a city and county, including a charter city and county. (5) "Production report" means the information reported pursuant to subparagraph (D) of paragraph (2) of subdivision (a) of Government Code Section 65400. (6) "Subsidized" means units that are price or rent restricted such that the units are permanently affordable to households meeting the definitions of very low and lower income, as defined in Sections 50079.5 and 50105 of the Health and Safety Code. (7) "Reporting period" means either of the following: (A) The first half of the regional housing needs assessment cycle. (B) The last half of the regional housing needs assessment cycle. (8) "Urban uses" means any current or former residential, commercial, public institutional, transit or transportation passenger facility, or retail use, or any combination of those uses. 9.02 HOUSING SUSTAINABILITY DISTRICTS. The Planning and Zoning Law requires a city or county to adopt a general plan for land use development within its boundaries. The general plan must contain seven mandatory elements, including a housing element. Existing law provides for various reforms and incentives intended to facilitate and expedite the construction of affordable housing. Senate Bill 73 authorizes a city, county, or city and county, including a charter agency, to establish by ordinance a housing sustainability district that meets specified requirements, including authorizing residential use within the district through the ministerial issuance of a permit. The agency is authorized to apply to the Department of Housing and Community Development for approval of a zoning incentive payment and requires the agency to provide specified information about the proposed housing sustainability district ordinance. The department is required to approve a zoning incentive payment if the ordinance meets the above -described requirements and the agency's housing element is in compliance with specified law. 2019 City of Santa Ana Local Guidelines 9-11 OBest Best & Krieger LLP 75D-157 Local Guidelines for Implementing the California Environmental Quality Act (2019) AFFORDABLE HOUSMG A city, county, or city and county with a housing sustainability district would be entitled to a zoning incentive payment, subject to appropriation of funds for that purpose, and require that one-half of the amount be paid when the department approves the zone and one-half of the amount be paid when the department verifies that permits for the construction of the units have issued within the zone, provided that the city, county, or city and county has received a certificate of compliance for the applicable year. If the agency reduces the density of sites within the district from specified levels set forth in the Senate Bill 73, the agency would be required to return the full amount of zoning incentive payments it has received to the department. The bill also authorizes a developer to develop a project in a housing sustainability district in accordance with the already existing land use approval procedures that would otherwise apply to the parcel in the absence of the establishment of the housing sustainability district pursuant to its provisions, as provided. As it relates specifically to CEQA, a Lead Agency designating a housing sustainability district is required to prepare an EIR pursuant to Government Code section 66201 to identify and mitigate, to the extent feasible, environmental impacts resulting from the designation. The EIR shall identify mitigation measures that may be undertaken by housing projects in the housing sustainability district to mitigate the environmental impacts identified in the EIR. Housing projects undertaken in the housing sustainability districts that meet specified requirements, including if the project satisfies certain design review standards applicable to development projects within the district provided the project is "complementary to adjacent buildings and structures and is consistent with the [agency's] general plan," are exempt under CEQA. 2019 City of Sauna Ana Local Guidelines ®Best Best & Krieger LLP 75D-158 Local Guidelines for Implementing the California Environmental Quality Act (2019) CEOA LITIGATION 10. CEOA LITIGATION 10.01 TIMELINES. When a CEQA lawsuit is filed, there are numerous and complex time requirements that must be met. Pressing deadlines begin to run in the days immediately after a CEQA lawsuit has been filed with the Court. For example, within ten (10) business days of the public agency being served with a petition or complaint alleging a violation of CEQA, the City, if it was the Lead Agency, must provide the petitioner with a list of Responsible Agencies and public agencies with jurisdiction by law over any natural resource affected by the project at issue. There are a variety of other deadlines that apply in CEQA litigation. If a CEQA lawsuit is filed, CEQA counsel should be contacted immediately in order to ensure that all the applicable deadlines are met. 10.02 MEDIATION AND SETTLEMENT. After Litigation Has Been Filed. The parties in a CEQA lawsuit are required to meet and discuss settlement. Within twenty (20) days of being served with a CEQA legal challenge, the public agency named in the lawsuit must file a notice with the court setting forth the time and place for a settlement meeting. The meeting must be scheduled and held not later than forty-five (45) days from the date of service of the petition or complaint upon the public agency. Usually the main parties to the litigation (such as the Lead Agency, the developer of the project if there is one, and those challenging the project and their respective attorneys) meet to discuss settlement; there is no requirement to hire a professional mediator. The settlement meeting is usually subject to a confidentiality agreement. If the parties in a CEQA lawsuit are in settlement or mediation, that attempt is intended to occur concurrently with the litigation. This means that the respondent public agency will be required to comply with all existing litigation timelines and requirements (for example, preparing and lodging the administrative record discussed below) while simultaneously conducting settlement or mediation, unless the parties enter into an alternate agreement to stay the litigation and that agreement is approved by the court. 10.03 ADMINISTRATIVE RECORD. A. Contents of Administrative Record. When the Lead Agency's CEQA finding(s) and/or action is challenged in a lawsuit, the Lead Agency must certify the administrative record that formed the basis of the Lead Agency's decision. To the extent the documents listed below exist and are not subject to a privilege that exempts them from disclosure, the following items should be included in the administrative record: (1) All project application materials; 2019 City of Santa Ana Local Guidelines CBest Best & Krieger LLP 75D-159 Local Guidelines for Implementing the California Environtnental Quality Act (2019) CEOA LITIGATION (2) All staff reports and related documents prepared by the public agency with respect to its compliance with the substantive and procedural requirements of CEQA and with respect to the action on the project; (3) All staff reports and related documents prepared by the public agency and written testimony or documents submitted by any person relevant to any findings or statement of overriding considerations adopted by the public agency pursuant to CEQA or these Local Guidelines; (4) Any transcript or minutes of the proceedings at which the decision -making body of the public agency heard testimony on or considered any environmental document on the project, and any transcript or minutes of proceedings before any advisory body to the respondent public agency that were presented to the decision -making body prior to action on the environmental documents or on the project; (5) All notices issued by the public agency to comply with CEQA or with any other law governing the processing and approval of the project; (6) All written comments received in response to, or in connection with, environmental documents prepared for the project, including responses to the notice of preparation; (7) All written evidence or correspondence submitted to, or transferred from, the public agency with respect to compliance with CEQA or with respect to the project; (8) Any proposed decisions or findings submitted to the decision -making body of the public agency by its staff or the project proponent, project opponents, or other persons, to the extent such documents are subject to public disclosure; (9) The documentation of the final public agency decision, including the final environmental impact report, mitigated negative declaration, or negative declaration, and all documents, in addition to those referenced in paragraph (3) above, cited or relied on in the findings or in a statement of overriding considerations adopted pursuant to CEQA; (10) Any other written materials relevant to the respondent public agency's compliance with CEQA or to its decision on the merits of the project, including the initial study; any drafts of any environmental document, or portions thereof, that were released for public review; copies of studies or other documents relied upon in any environmental document prepared for the project and either made available to the public during the public review period or included in the public agency's files on the project; and internal agency communications related to the project or to compliance with CEQA, to the extent such documents are subject to public disclosure; and 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-160 Local Guidelines for Lnplementing the Califomia Environmental Ouality Act (2019) CEOA LITIGATION (11) The full written record before any inferior administrative decision -making body whose decision was appealed prior to the filing of the lawsuit. B. Organization of Administrative Record. The administrative record should be organized as follows: (1) Index. A detailed index must be included at the beginning of the administrative record listing each document in the order presented. Each entry must include the document's title, date, brief description, and the volume and page where the document begins; (2) The Notice of Determination; (3) The resolutions or ordinances adopted by the Lead Agency approving the project; (4) The findings required by Public Resources Code section 21081, including any statement of overriding considerations; (5) The Final EIR, including the Draft EIR or a revision of the draft, all other matters included in the Final EIR (such as traffic studies and air quality studies), and other types of environmental documents prepared under CEQA, such as a negative declaration, mitigated negative declaration, or addenda; (6) The initial study; (7) Staff reports prepared for the administrative bodies providing subordinate approvals or recommendations to the Lead Agency, in chronological order; (8) Transcripts and minutes of hearings, in chronological order; and (9) All other documents appropriate for inclusion in the administrative record, in chronological order. Each section listed above must be separated by tabs or marked with electronic bookmarks. Oversized documents (such as building plans and maps) must be presented in a manner that allows them to be easily unfolded and viewed. The court may issue an order allowing the documents to be organized in a different manner. C. Preparation of Administrative Record. The administrative record can be prepared: (1) by the petitioner, if the petitioner elects to do so, or (2) by the Lead Agency. The petitioner and the Lead Agency can also agree on any alternative method of preparing the record. However, when a third party such as the project applicant prepares or assists with the preparation of the administrative record, the Lead Agency 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-161 Local Guidelines for Implementing the California Environmental Quality Act (2019) CEOA LITIGATION may not be able to recover fees incurred by the third party unless petitioner has agreed to this method of preparation. Notwithstanding the above, upon the written request of a project applicant received no later than 30 days after the date that the Lead Agency makes a determination pursuant to Public Resources Code section 21080.1, 21094.5, or Chapter 4.2 (commencing with Public Resources Code section 21155) and with the written consent of the Lead Agency sent within 10 business days from receipt of the written request, the Lead Agency may prepare the administrative record concurrently with the administrative process. Should the Lead Agency and the project applicant so desire to pursue concurrent record preparation, the parties must comply with the provisions of Public Resources Code section 21167.6.2. D. Special Circumstances For Environmental Leadership Projects. Special timing considerations and requirements apply if the Project is certified by the Governor as an Environmental Leadership Project pursuant to the "Jobs and Economic Improvement Through Environmental Leadership Act of 2011." For example, the administrative record must be finished and certified within five (5) days of project approval. See Public Resources Code Section 21186 for a complete discussion of the special requirements related to the preparation of an administrative record for an Environmental Leadership Project. 2019 City of Santa Ana Local Guidelines OBest Best & Krieger LLP 75D-162 Local Guidelines for Implementing the California Environmental Ouality Act (2019) DEFINITIONS 11. DEFINITIONS Whenever the following terms are used in these Local Guidelines, they shall have the following meaning unless otherwise expressly defined: 11.01 "Agricultural Employee" means a person engaged in agriculture, which includes farming in all its branches, and, among other things, includes: (1) the cultivation and tillage of the soil, (2) dairying, (3) the production, cultivation, growing, and harvesting of any agricultural or horticultural commodities, (4) the raising of livestock, bees, forbearing animals, or poultry, and (5) any practices (including any forestry or lumbering operations) performed by a farmer or on a farm as an incident to or in conjunction with such farming operations, including preparation for market and delivery to storage or to market or to carriers for transportation to market. This definition does not include any person covered by the National Labor Relations Act as agricultural employees pursuant to Section 2(3) of the Labor Management Relations Act (Section 152(3), Title 29, United States Code) and Section 3(f) of the Fair Labor Standards Act (Section 203(i), Title 29, United States Code). This definition does not apply to employees who perform work to be done at the site of the construction, alteration, painting, or repair of a building, structure, or other work (as these terms have been construed under Section 8(e) of the Labor Management Relations Act, 29 United States Code Section 158(e)) or logging or timber -clearing operations in initial preparation of land for farming, or who does land leveling or only land surveying for any of the above. As used in this definition, "land leveling" shall include only major land moving operations changing the contour of the land, but shall not include annual or seasonal tillage or preparation of land for cultivation. (State CEQA Guidelines Section 15191(a).) 11.02 "Applicant" means a person who proposes to carry out a project that requires a lease, permit, license, certificate, or other entitlement for use, or requires financial aid from one or more public agencies when applying for governmental approval or assistance. 11.03 "Approval" means a decision by the decision -making body or other authorized body or officer of the City which commits the City to a definite course of action with regard to a particular project. With regard to any project to be undertaken directly by the City, approval shall be deemed to occur on the date when the decision -making body adopts a motion or resolution determining to proceed with the project, which in no event shall be later than the date of adoption of plans and specifications. As to private projects, approval shall be deemed to have occurred upon the earliest commitment to provide service or the issuance by the City of a discretionary contract, subsidy, or other form of financial assistance, lease, permit, license, certificate, or other entitlement for use of the project. The mere acquisition of land by the City shall not, in and of itself, be deemed to constitute approval of a project. For purposes of these Local Guidelines, all environmental documents must be completed as of the time of project approval. 2019 City of Santa Ana Local Guidelines OBest Best & Krieger LLP 75D-163 Local Guidelines for Implemeating the California Environmental Ouality Act (2019) DEFINITIONS 11.04 "Baseline" refers to the pre -project environmental conditions. By comparing the project's potential impacts to the baseline, the Lead Agency determines whether the project's impacts are substantial enough to be significant under the relevant thresholds of significance. Generally, the baseline is the environmental conditions existing on the date the environmental analysis begins, such as the date the Notice of Preparation is published for an EIR or the date the Notice of Intent to Adopt a Negative Declaration is published. However, in certain circumstances, an earlier or later date may provide a more accurate environmental analysis. The City may establish any baseline that is appropriate, including an earlier or later date, as long as the choice of baseline can be supported by substantial evidence. 11.05 "California Native American Tribe" means a Native American tribe located in California that is on the contact list maintained by the Native American Heritage Commission for the purposes of Chapter 905 of the Statutes of 2004. 11.06 "Categorical Exemption" means an exemption from CEQA for a class of projects based on a finding by the Secretary of the Resources Agency that the class of projects does not have a significant effect on the environment. 11.07 "Census -Defined Place" means a specific unincorporated land area within boundaries determined by the United States Census Bureau in the most recent decennial census. 11.08 "CEQA" means the California Environmental Quality Act, codified at California Public Resources Code Sections 21000, et seq. 11.09 "City" means the City of Santa Ana. 11.10 "Clerk" means either the "Clerk of the Board" or the "County Clerk" depending upon the county. Please refer to the "Index to Environmental Filing by County" in the Staff Summary to determine which applies. 11.11 "Community -Level Environmental Review" means either (1) or (2) below: (1) An EIR certified for any of the following: (a) A general plan; (b) A revision or update to the general plan that includes at least the land use and circulation elements; (c) An applicable community plan; (d) An applicable specific plan; or (e) A housing element of the general plan, if the Environmental Impact Report analyzed the environmental effects of the density of the proposed project; (2) A Negative Declaration or Mitigated Negative Declaration adopted as a subsequent environmental review document, following and based upon an EIR on a general plan, an applicable community plan or specific plan, provided that the subsequent environmental review document is allowed by 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-164 Local Guidelines for Implementing the California Environmental Quality Act (2019) DEFUNMONS CEQA following a Master EIR or a Program EIR or is required pursuant to Public Resource Section 21166. 11.12 "Consultation" means the meaningful and timely process of seeking, discussing, and considering carefully the views of others, in a manner that is cognizant of all parties' cultural values and, where feasible, seeking agreement. Consultation between government agencies and Native American tribes shall be conducted in a way that is mutually respectful of each party's sovereignty. Consultation shall also recognize the tribes' potential needs for confidentiality with respect to places that have traditional tribal cultural significance. 11.13 "Cumulative Impacts" means two or more individual effects which, when considered together, are considerable or which compound or increase other environmental impacts. The individual effects may be changes resulting from a single project or a number of separate projects, whether past, present or future. The cumulative impact from several projects is the change in the environment which results from the incremental impact of the project when added to other closely related past, present and reasonably foreseeable future projects. Cumulative impacts can result from individually minor but collectively significant projects taking place over a period of time. 11.14 "Cumulatively Considerable" means that the incremental effects of an individual project are significant when viewed in connection with the effects of past projects, the effects of other current projects, and the effects of probable future projects. 11.15 "Decision -Making Body" means the body within the City, e.g. the City Council, which has final approval authority over the particular project. 11.16 "Developed Open Space" means land that meets each of the following three criteria: (1) Is publicly owned, or financed in whole or in part by public funds; (2) Is generally open to, and available for use by, the public; and (3) Is predominantly lacking in structural development other than structures associated with open spaces, including, but not limited to, playgrounds, swimming pools, ball fields, enclosed child play areas, and picnic facilities. Developed Open Space may include land that has been designated for acquisition by a public agency for developed open space purposes, but does not include lands acquired by public funds dedicated to the acquisition of land for housing purposes. 11.17 "Development Project" means any project undertaken for the purpose of development, including any project involving -the issuance of a permit for construction or reconstruction but not a permit to operate. It does not include any ministerial projects proposed to be carried out or approved by public agencies. (Government Code Section 65928.) 2019 City of Santa Ana Local Guidelines CBest Best & Krieger LLP 75D-165 Local Guidelines for Implementing the California Environmental Quality Act (2019) DEFINITIONS 11.18 "Discretionary Project' means a project for which approval requires the exercise of independent judgment, deliberation, or decision -making on the part of the City. To determine whether a project is discretionary, the key question is whether the public agency can use its subjective judgment to decide whether and how to carry out or approve a project. 11.19 "EIR" means Environmental Impact Report, a detailed written statement setting forth the environmental effects and considerations pertaining to a project. EIR may mean a Draft or a Final version of an EIR, a Project EIR, a Subsequent EIR, a Supplemental EIR, a Tiered EIR, a Staged EIR, a Program EIR, a Redevelopment EIR, a Master EIR, or a Focused EIR. 11.20 "Emergency" means a sudden, unexpected occurrence, involving a clear and imminent danger, demanding immediate action to prevent or mitigate loss of, or damage to, life, health, property, or essential public services. Emergency includes such occurrences as fire, flood, earthquake, landslide or other natural disaster, as well as such occurrences as riot, war, terrorist incident, accident or sabotage. 11.21 "Endangered, Rare or Threatened Species" means certain species or subspecies of animals or plants. A species or subspecies of animal or plant is "Endangered" when its survival and reproduction in the wild are in immediate jeopardy from one or more causes, including loss of habitat, change in habitat, overexploitation, predation, competition, disease, or other factors. A species or subspecies of animal or plant is "Threatened" when it is listed as a threatened species pursuant to the California Endangered Species Act or the Federal Endangered Species Act. A species or subspecies of animal or plant is "Rare" when either: (1) Although not presently threatened with extinction, the species is existing in such small numbers throughout all or a significant portion of its range that it may become endangered if its environment worsens; or (2) The species is likely to become endangered within the foreseeable future throughout all or a significant portion of its range and many be considered "threatened" as that term is used in the Federal Endangered Species Act. For purposes of analyzing impacts to biological resources, a species of animal or plant shall be presumed to be endangered, rare or threatened if it is listed under the California Endangered Species Act or the Federal Endangered Species Act. This definition shall not include any species of the Class Insecta which is a pest whose protection under the provisions of CEQA would present an overwhelming and overriding risk to man as determined by the Director of Food and Agriculture (with regard to economic pests) or the Director of Health Services (with regard to health risks). 11.22 "Environment' means the physical conditions which exist in the area which will be affected by a proposed project, including land, air, water, minerals, flora, fauna, ambient noise, and objects of historic or aesthetic significance. The area involved 2019 City of Santa Ana Local Guidelines 11-4 CBest Best & Krieger LLP 75D-166 Local Guidelines for Implementing the California Environmental O ality Act (2019) DEFINITIONS shall be the area in which significant effects would occur either directly or indirectly as a result of the project. The "environment" includes both natural and man-made conditions. 11.23 "Feasible" means capable of being accomplished in a successful manner within a reasonable period of time, taking into account economic, environmental, social and technological factors. 11.24 "Final EIR" means an EIR containing the information contained in the Draft EIR, comments either verbatim or in summary received in the review process, a list of persons commenting, and the response of the City to the comments received. 11.25 "Greenhouse Gases" include, but are not limited to, carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride. 11.26 "Guidelines" or "Local Guidelines" means the City's Local Guidelines for implementing the California Environmental Quality Act. 11.27 "Highway" shall have the same meaning as defined in Section 360 of the Vehicle Code. 11.28 "Historical Resources" include: Resources listed in, or eligible for listing in, the California Register of Historical Resources shall be considered historical resources. A resource may be listed in the California Register if it meets any of the following National Register of Historic Places criteria: (a) Is associated with events that have made a significant contribution to the broad patterns of California's history and cultural heritage; (b) Is associated with the lives of persons important in our past; (c) Embodies the distinctive characteristics of a type, period, region, or method of construction, or represents the work of an important creative individual, or possesses high artistic values; or (d) Has yielded, or may be likely to yield, information important in prehistory or history. A resource may also be listed in the California Register if it is identified as significant in an historical resource survey that meets all of the following criteria: (a) The survey has been or will be included in the State Historic Resources Inventory; (b) The survey and the survey documentation were prepared in accordance with office procedures and requirements; and (c) The resource is evaluated and determined by the office to have a significance rating of Category 1 to 5 on DPR Form 523. 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-167 Local Guidelines for Implementing the California Environmental Ouality Act (2019) DEFINITIONS Resources included on a list of properties officially designated or recognized as historically significant by a local government pursuant to a local ordinance or resolution, or identified as significant in a historical resource survey (as described above) are presumed to be historically or culturally significant, unless a preponderance of evidence demonstrates that they are not historically or culturally significant. Any of the following may be considered historically significant: any object, building, structure, site, area, place, record or manuscript which a Lead Agency determines, based upon substantial evidence in light of the whole record, to be historically significant or significant in the architectural, engineering, scientific, economic, agricultural, educational, social, political, military or cultural annals of California. The Lead Agency is not precluded from determining that a resource is a historical resource, as defined in Public Resources Code Sections 5020.10) or 5024.1, even if it is: (a) not listed in, or is not determined to be eligible for listing in, the California Register of Historical Resources; (b) not included in a local register of historical resources; or (c) not identified in a historical resources survey. 11.29 "Infill Site" means a site in an urbanized area that meets either of the following criteria: (1) The site has been previously developed for qualified urban uses; or (2) The site has not been previously developed for qualified urban uses and both (a) and (b) are met: (a) the site is immediately adjacent to parcels that are developed with qualified urban uses, or 1. at least 75 percent of the perimeter of the site adjoins, or is separated only by an improved public right-of-way from, parcels that are developed with existing qualified urban uses at the time the Lead Agency receives an application for an approval; and 2. the remaining 25 percent of the perimeter of the site adjoins parcels that had been previously developed for qualified urban uses; (b) No parcel within the site has been created within the past 10 years unless the parcel was created as a result of the plan of a redevelopment agency. (Public Resources Code Section 21061.3.) 11.30 "Initial Study" means a preliminary analysis conducted by the City to determine whether an EIR, a Negative Declaration, or a Mitigated Negative Declaration must be prepared or to identify the significant environmental effects to be analyzed in an EIR. 2019 City of Santa Ana Local Guidelines OBest Best & Krieger LLP 75D-168 Local Guidelines for Implementing the California Environmental Ouality Act (2019) DEFINITIONS 11.31 "Jurisdiction by Law" means the authority of any public agency to grant a permit or other entitlement for use, to provide funding for the project in question or to exercise authority over resources which maybe affected by the project. The City will have jurisdiction by law over a project when the City has primary and exclusive jurisdiction over the site of the project, the area in which the major environmental effects will occur, or the area in which reside those citizens most directly concerned by any such environmental effects. 11.32 "Land Disposal Facility" means a hazardous waste facility where hazardous waste is disposed in, on, or under land. (Health and Safety Code Section 25199.1(d).) 11.33 "Large Treatment Facility" means a treatment facility which treats or recycles one thousand (1,000) or more tons of hazardous waste during any one month of the current reporting period commencing on or after July 1, 1991. (Health and Safety Code Section 25205.1(d).) 11.34 "Lead Agency" means the public agency which has the principal responsibility for preparing environmental documents and for carrying out or approving a project when more than one public agency is involved with the same underlying activity. 11.35 "Low- and Moderate -Income Households" means persons and families of low or moderate income as defined in Section 50093 of the Health and Safety Code—i.e., persons and families whose income does not exceed 120% of area median income, adjusted for family size by the Department of Housing and Community Development, in accordance with adjustment factors adopted and amended from time to time by the United States Department of Housing and Urban Development pursuant to Section 8 of the United States Housing Act of 1937. (Public Resources Code Section 21159.20(d); State CEQA Guidelines Section 15191(f).) 11.36 "Low -Income Households" means households of persons and families of very low and low income. Low-income persons or families are those eligible for financial assistance from governmental agencies for occupants of state -funded housing. Very low income persons are those whose incomes do not exceed the qualifying limits for very low income families as established and amended pursuant to Section 8 of the United States Housing Act of 1937. Such limits are published and updated in the California Code of Regulations. (Public Resources Code Section 21159.20(c); Health and Safety Code Sections 50105 and 50106; State CEQA Guidelines Section 15191(g).) 11.37 "Low -Level Flight Path" means any flight path for any aircraft owned, maintained, or under the jurisdiction of the United States Department of Defense that flies lower than 1,500 feet above ground level, as indicated in the United States Department of Defense Flight Information Publication, "Area Planning Military Training Routes: North and South America (AP/IB)" published by the United States National Imagery and Mapping Agency or its successor. 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-169 Local Guidelines for Implementing the California Environmental Ouality Act (2019) DEFINITIONS 11.38 "Lower Income Households" is defined in Health and Safety Code Section 50079.5 to mean any of the following: (1) "Lower income households" means persons and families whose income does not exceed the qualifying limits for lower income families as established and amended from time to time pursuant to Section 8 of the United States Housing Act of 1937; (2) "Very low income households" means persons and families whose incomes do not exceed the qualifying limits for very low income families as defined in Health and Safety Code 50105; or (3) "Extremely low income households" means persons and families whose incomes do not exceed the qualifying limits for extremely low income families as defined in Health and Safety Code Section 50106. 11.39 "Major Transit Stop" means a site containing an existing rail transit station, a ferry terminal served by either a bus or rail transit service, or the intersection of two or more major bus routes with a frequency of service interval of fifteen (15) minutes or less during the morning and afternoon peak commute periods. (State CEQA Guidelines Section 15191(i).) 11.40 "Metropolitan Planning Organization" or "MPO" means a federally -designated agency that provides transportation planning and programming in metropolitan areas. A MPO is designated for each urban area that has been defined in the most recent federal census as having a population of more than 50,000 people. There are 1S federally -designated MPOs in California. Non -urbanized (rural) areas do not have a designated MPO. 11.41 "Military Impact Zone" means any area, including airspace, that meets both of the following criteria: (1) Is located within two miles of a military installation, including, but not limited to, any base, military airport, camp, post, station, yard, center, homeport facility for a ship, or any other military activity center that is under the jurisdiction of the United States Department of Defense; and (2) Covers greater than 500 acres of unincorporated land, or greater than 100 acres of city incorporated land. 11.42 "Military Service" means the United States Department of Defense or any branch of the United States Armed Forces. 11.43 "Ministerial' describes a governmental decision involving little or no personal judgment by the public official as to the wisdom or manner of carrying out the project. The public official merely applies the law to the facts as presented but uses no special discretion or standards or objective measurements, and the public official cannot use personal, subjective judgment in deciding whether or how the project 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-170 Local Guidelines for Implementing the California E viro mental Quality Act (2019) DEFINITIONS should be carried out. Common examples of ministerial permits include automobile registrations, dog licenses, and marriage licenses. A building permit is ministerial if the ordinance requiring the permit limits the public official to determining whether the zoning allows the structure to be built in the requested location, the structure would meet the strength requirements in the Uniform Building Code, and the applicant has paid his fee. (Public Resources Code Section 21080(b)(1).) 11.44 "Mitigated Negative Declaration" or "MND" means a Negative Declaration prepared for a Project when the Initial Study has identified potentially significant effects on the environment, but: (1) revisions in the project plans or proposals made, or agreed to, by the applicant before the proposed Negative Declaration and Initial Study are released for public review would avoid the effects or mitigate the effects to a point where clearly no significant effect on the environment would occur, and (2) there is no substantial evidence in light of the whole record before the public agency that the project, as revised, may have a significant effect on the environment. 11.45 "Mitigation" includes avoiding the environmental impact altogether by not taking a certain action or parts of an action, minimizing impacts by limiting the degree or magnitude of the action and its implementation, rectifying the impact by repairing, rehabilitating or restoring the impacted environment, reducing or eliminating the impact over time by preservation and maintenance operations during the life of the action, or compensating for the impact by replacing or providing substitute resources or environments, including through permanent protection of such resources in the form of conservation easements. 11.46 "Negative Declaration" or "ND" means a written statement by the City briefly describing the reasons that a proposed project, not exempt from CEQA, will not have a significant effect on the environment and, therefore, does not require the preparation of an EIR. 11.47 "Notice of Completion" means a brief report filed with the Office of Planning and Research by the City when it is the Lead Agency as soon as it has completed a Draft EIR and is prepared to send out copies for review. 11.48 "Notice of Determination" means a brief notice to be filed by the City when it approves or determines to carry out a project which is subject to the requirements of CEQA. 11.49 "Notice of Exemption" means a brief notice which may be filed by the City when it has approved or determined to carry out a project, and it has determined that the project is exempt from the requirements of CEQA. Such a notice may also be filed by an applicant where such a determination has been made by a public agency which must approve the project. 11.50 "Notice of Preparation" means a brief notice sent by a Lead Agency to notify the Responsible Agencies, Trustee Agencies, the Office of Planning and Research, and involved federal agencies that the Lead Agency plans to prepare an EIR for a project. 2019 City of Santa Ana Local Guidelines 11-9 ©Best Best & Krieger LLP 75D-171 Local Guidelines for Implementing the California Environmental Quality Act (2019) DEFINITIONS The purpose of this notice is to solicit guidance from those agencies as to the scope and content of the environmental information to be included in the EIR. Public agencies are free to develop their own formats for this notice. 11.51 "Oak" means a native tree species in the genus Quercus, not designated as Group A or Group B commercial species pursuant to regulations adopted by the State Board of Forestry and Fire Protection pursuant to Public Resources Code Section 4526, and that is five (5) inches or more in diameter at breast height. (Public Resources Code Section 21083.4(a).) 11.52 "Oak Woodlands" means an oak stand with a greater than 10 percent canopy cover or that may have historically supported greater than 10 percent canopy cover. (Fish & Game Code Section 1361(h).) 11.53 "Offsite Facility" means a facility that serves more than one generator of hazardous waste. (Public Resources Code Section 21151.1(h).) 11.54 "Person" includes any person, firm, association, organization, partnership, business, trust, corporation, company, city, county, city and county, town, the state, and any of the agencies which may be political subdivisions of such entities, and, to the extent permitted by federal law, the United States, or any of its agencies or political subdivisions. 11.55 "Pipeline" as defined in these Local Guidelines depends on the context. Please see Local Guidelines Sections 3.11 and 3.12 for specific definitions. 11.56 "Private Project" means a project which will be carried out by a person other than a governmental agency, but which will need a discretionary approval from the City. Private projects will normally be those listed in subsections (2) and (3) of Local Guidelines Section 11.57. 11.57 "Project" means the whole of an action or activity which may cause either a direct physical change in the environment, or a reasonably foreseeable indirect change in the environment, and is any of the following: (1) A discretionary activity directly undertaken by the City including but not limited to public works construction and related activities, clearing or grading of land, or improvements to existing public structures; (2) A discretionary activity which involves a public agency's issuance to a person of a lease, permit, license, certificate, or other entitlement for use, or which is supported, in whole or in part, through contracts, grants, subsidies, loans or other forms of assistance by the City; or (3) A discretionary project proposed to be carried out or approved by public agencies, including but not limited to the enactment and amendment of local General Plans or elements thereof, the enactment of zoning ordinances, the 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-172 Local Guidelines for Implementing the California Environmental Quality Act (2019) DEFINITIONS issuance of zoning variances, the issuance of conditional use permits and the approval of tentative subdivision maps. The presence of any real degree of control over the manner in which a project is completed makes it a discretionary project. The term "project" refers to the activity which is being approved and which may be subject to several discretionary approvals by governmental agencies. The term "project" does not mean each separate governmental approval. 11.58 "Project -Specific Effects" means all the direct or indirect environmental effects of a project other than cumulative effects and growth -inducing effects. (Public Resources Code Section 21065.3; State CEQA Guidelines Section 151910).) 11.59 "Public Water System" means a system for the provision of piped water to the public for human consumption that has 3,000 or more service connections. A public water system includes all of the following: (A) Any collection, treatment, storage, and distribution facility under control of the operator of the system which is used primarily in connection with the system; (B) Any collection or pretreatment storage facility not under the control of the operator that is used primarily in connection with the system; (C) Any person who treats water on behalf of one or more public water systems for the purpose of rendering it safe for human consumption. (State CEQA Guidelines Section 15155.) 11.60 "Qualified Urban Use" means any residential, commercial, public institutional, transit or transportation passenger facility, or retail use, or any combination of those uses. (Public Resources Code Section 21072; State CEQA Guidelines Section 15191(k).) 11.61 "Residential" means a use consisting of either residential units only or residential units and primarily neighborhood -serving goods, services, or retail uses that do not exceed 15% of the total floor area of the project. (State CEQA Guidelines Section 15191(1).) Residential, pursuant to Public Resources Code Section 21159.24, shall mean a use consisting of either of the following: (1) Residential units only. (2) Residential units and primarily neighborhood -serving goods, services, or retail uses that do not exceed 25 percent of the total building square footage of the project. 11.62 "Responsible Agency" means a public agency which proposes to carry out or approve a project for which a Lead Agency has prepared the environmental documents. For the purposes of CEQA, the term "Responsible Agency" includes all federal, state, regional and local public agencies other than the Lead Agency which have discretionary approval power over the project. 11.63 'Riparian areas" mean those areas transitional between terrestrial and aquatic ecosystems and that are distinguished by gradients in biophysical conditions, 2019 City of Santa Ana Local Guidelines I 1-1 1 ®Best Best & Krieger LLP 75D-173 Local Guidelines for Implementing the California Environmental Quality Act (2019) DEFINITIONS ecological processes, and biota. A riparian area is an area through which surface and subsurface hydrology connect waterbodies with their adjacent uplands. A riparian area includes those portions of terrestrial ecosystems that significantly influence exchanges of energy and matter with aquatic ecosystems. A riparian area is adjacent to perennial, intermittent, and ephemeral streams, lakes, and estuarine -marine shorelines. 11.64 "Roadway" means a roadway as defined pursuant to Section 530 of the Vehicle Code and the previously graded and maintained shoulder that is within a roadway right-of- way of no more than five feet from the edge of the roadway. 11.65 "Significant Effect" means a substantial, or potentially substantial, adverse change in any of the physical conditions within the area affected by the activity including land, air, water, minerals, flora, fauna, ambient noise, and objects of historic or aesthetic significance. A social or economic change related to a physical change may be considered in determining whether the physical change is significant. 11.66 "Significant Value as a Wildlife Habitat" includes wildlife habitat of national, statewide, regional, or local importance; habitat for species protected by the federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531, et seq.), the California Endangered Species Act (Chapter 1.5 (commencing with Section 2050) of Division 3 of the Fish and Game Code), or the Native Plant Protection Act (Chapter 10 (commencing with Section 1900) of Division 2 of the Fish and Game Code); habitat identified as candidate, fully protected, sensitive, or species of special status by local, state, or federal agencies; or habitat essential to the movement of resident or migratory wildlife. 11.67 "Special Use Airspace" means the land area underlying the airspace that is designated for training, research, development, or evaluation for a military service, as that land area is established by the United States Department of Defense Flight Information Publication, "Area Planning: Special Use Airspace: North and South America (AP/IA)" published by the United States National Imagery and Mapping Agency or its successor. 11.68 "Staff' means the General Manager or his or her designee. 11.69 "Standard" means a standard of general application that is all of the following: (1) A quantitative, qualitative or performance requirement found in a statute, ordinance, resolution, rule, regulation, order, or other standard of general application; (2) Adopted for the purpose of environmental protection; (3) Adopted by a public agency through a public review process; (4) Governs the same environmental effect which the change in the environment is impacting; and 2019 City of Santa Ana Local Guidelines 11-12 OBest Best & Krieger LLP 75D-174 Local Guidelines for Implementing the California Environmental Ouality Act (2019) DEFINITIONS (5) Governs the jurisdiction where the project is located. The definition of "standard" includes any thresholds of significance adopted by the City which meet the requirements of this Section. If there is a conflict between standards, the City shall determine which standard is appropriate based upon substantial evidence in light of the whole record. 11.70 "State CEQA Guidelines" means the Guidelines for Implementation of the California Environmental Quality Act as adopted by the Secretary of the California Natural Resources Agency as they now exist or hereafter may be amended. (California Administrative Code, Title 14, Sections 15000, et seq.) 11.71 "Substantial Evidence" means reliable information on which a fair argument can be based to support an inference or conclusion, even though another conclusion could be drawn from that information. "Substantial evidence" includes facts, reasonable assumptions predicated upon facts, and expert opinion supported by facts. "Substantial evidence" does not include argument, speculation, unsubstantiated opinion or narrative, evidence which is clearly inaccurate or erroneous, or evidence of social or economic impacts which do not contribute to, or are not caused by, physical impacts on the environment. 11.72 "Sustainable Communities Strategy" is an element of a Regional Transportation Plan, which must be adopted by the Metropolitan Planning Organization for the region. (See Local Guidelines Section 11.40.) The Sustainable Communities Strategy is an integrated land use and transportation plan intended to reduce greenhouse gases. The Sustainable Communities Strategy includes various components such as: consideration of existing densities and uses within the region, identification of areas within the region that can accommodate an eight -year projection of the region's housing needs, development of projections for growth in the region, identification of existing transportation networks, and preparation of a forecast for development pattern for the region that can be integrated with transportation networks. 11.73 "Tiering" means the coverage of general matters in broader EIRs (such as on general plans or policy statements) with subsequent narrower EIRs or ultimately site -specific EIRs incorporating by reference the general discussions and concentrating solely on the issues specific to the EIR subsequently prepared. Tiering is appropriate when the sequence of EIRs is: (a) From a general plan, policy, or Program EIR to a program, plan, or policy EIR of lesser scope or to a site -specific EIR; or (b) From an EIR on a specific action at an early stage to a subsequent EIR or a supplement to an EIR at a later stage. Tiering in such cases is appropriate when it helps the Lead Agency to focus on the issues which are ripe for decision and exclude from consideration issues already decided or not yet ripe. (Public Resources Code Sections 21003, 21061 and 21100.) 2019 City of Santa Ana Local Guidelines 1 1-13 ®Best Best & Krieger LLP 75D-175 Local Guidelines for Implementing the California Environmental Ouality Act (2019) DEFINITIONS 11.74 "Transit Priority Area" means an area within one-half mile of a major transit stop that is existing or planned, if the planned stop is scheduled to be completed within the planning horizon included in a Transportation Improvement Program adopted pursuant to Section 450.216 or 450.322 of Title 23 of the Code of Federal Regulations. 11.75 "Transit Priority Project" means a mixed use project that is consistent with the general use designation, density, building intensity, and applicable policies specified for the project area in either a sustainable communities strategy or an alternative planning strategy for which the California Air Resources Board has accepted a Metropolitan Planning Organization's determination that the sustainable communities strategy or the alternative planning strategy would, if implemented, achieve the greenhouse gas emission reduction targets. Such a project may be exempt from CEQA if a detailed laundry list of requirements is met. To qualify for the exemption, the Transit Priority Project must: (1) contain at least 50 percent residential use based on total building square footage; (2) if the project contains between 26 percent and 50 percent non-residential uses, the floor -to -area ratio (FAR) must be at least 0.75; (3) have a minimum net density of 20 dwelling units per acre; (4) be located within a half mile of a major transit stop or high -quality transit corridor included in a regional transportation plan; and (5) meet all the requirements of Public Resources Code Section 21155.1. 11.76 "Transportation Facilities" includes major local arterials and public transit within five (5) miles of the project site, and freeways, highways, and rail transit service within ten (10) miles of the project site. 11.77 "Tribal Cultural Resources" are either of the following: (1) Sites, features, places, cultural landscapes, sacred places, and objects with cultural value to a California Native American tribe that are either of the following: (a) Included or determined to be eligible for inclusion in the California Register of Historical Resources. (b) Included in a local register of historic resources as defined in subdivision (k) of Public Resources Code Section 5020.1. (2) A resource determined by the Lead Agency, in its discretion and supported by substantial evidence, to be significant pursuant to criteria set forth in subdivision (c) of Public Resources Code Section 5024.1. In applying the criteria set forth in subdivision (c) of Section 5024.1 for the purposes of this 2019 City of Santa Ana Local Guidelines ©Best Best & Krieger LLP 75D-176 Local Guidelines for Implementing the California Environmental Ouality Act (2019) DERNMONS definition, the Lead Agency shall consider the significance of the resource to a California Native American tribe. A cultural landscape that meets the criteria set forth above is a tribal cultural resource to the extent that the landscape is geographically defined in terms of the size and scope of the landscape. A historic resource described in Public Resources Code Section 21084.1, a unique archaeological resource as defined in subdivision (g) of Public Resources Code Section 21083.2, or a "nonunique archaeological resource" as defined in subdivision (h) of Public Resources Code Section 21083.2 may also be a tribal cultural resource if it conforms with the criteria of Tribal cultural resources. 11.78 "Trustee Agency" means a State agency having jurisdiction by law over natural resources affected by a project which are held in trust for the people of the State of California. Trustee Agencies may include, but are not limited to, the following: (a) The California Department of Fish and Wildlife ("DFW") with regard to the fish and wildlife of the state, designated rare or endangered native plants, and game refuges, ecological reserves, and other areas administered by DFW; (b) The State Lands Commission with regard to state owned "sovereign" lands such as the beds of navigable waters and state school lands; (c) The State Department of Parks and Recreation with regard to units of the State Park System; (d) The University of California with regard to sites within the Natural Land and Water Reserve System; and/or (e) The State Water Resources Control Board with respect to surface waters. 11.79 "Urban Growth Boundary" means a provision of a locally adopted general plan that allows urban uses on one side of the boundary and prohibits urban uses on the other side of the boundary. 11.80 "Urbanized Area" means either of the following: (1) An incorporated city that either by itself or in combination with two contiguous incorporated cities has a population of at least one hundred thousand (100,000) persons; (2) An unincorporated area that meets both of the following requirements: (a) The unincorporated area is either: (i) completely surrounded by one or more incorporated cities, has a population of at least 100,000 persons either by itself or in combination with the surrounding incorporated city or cities, and has a population density that at least equals the population density of the surrounding city or cities; or 2019 City of Santa Ana Local Guidelines ©Best Best & Krieger LLP 75D-177 Local Guidelines for Implemeating the California Environmental Quality Act (2019) DEFINITIONS (ii) located within an urban growth boundary and has an existing residential population of at least five thousand (5,000) persons per square mile. An "urban growth boundary" means a provision of a locally adopted general plan that allows urban uses on one side of the boundary and prohibits urban uses on the other side. (b) The board of supervisors with jurisdiction over the unincorporated area has taken all three of the following steps: 1. Prepared a draft document by which the board would find that the general plan, zoning ordinance, and related policies and programs applicable to the unincorporated area are consistent with principles that encourage compact development in a manner that promotes efficient transportation systems, economic growth, affordable housing, energy efficiency, and an appropriate balance of jobs and housing, and protects the environment, open space and agricultural areas; 2. Submitted the draft document to the Office of Planning and Research and allowed OPR thirty (30) days to submit comments on the draft finding to the board; and 3. At least thirty (30) days after submitting the draft document to OPR, the board has adopted a final finding in substantial conformity with the draft finding described in the draft document. (Public Resources Code Sections 21083, 21159.20-21159.24; State CEQA Guidelines Section 15191(m).) 11.81 "Water Acquisition Plans" means any plans for acquiring additional water supplies prepared by the public water system or a city or county Lead Agency pursuant to subdivision (a) of section 10911 of the Water Code. 11.82 "Water Assessment" or "Water Supply Assessment" means the water supply assessment that must be prepared by the governing body of a public water system, or a city or county, pursuant to and in compliance with sections 10910 to 10915 of the Water Code, and that includes, without limitation, the elements of the assessment required to comply with subdivisions (d), (e), (f), and (g) of section 10910 of the Water Code. 11.83 "Water Demand Project" means any one of the following: (A) A residential development of more than 500 dwelling units; (B) A shopping center or business establishment employing more than 1,000 persons or having more than 500,000 square feet of floor space; (C) A commercial office building employing more than 1,000 persons or having more than 250,000 square feet of floor space; 2019 City of Santa Ana Local Guidelines 11-16 OBest Best & Krieger LLP 75D-178 Local Guidelines for Implementing the California Environmental Ouality Act (2019) DEFINITIONS (D) A hotel or motel, or both, having more than 500 rooms; (E) An industrial, manufacturing, or processing plant, or industrial park planned to house more than 1,000 persons, occupying more than 40 acres of land, or having more than 650,000 square feet of floor area; Except, a proposed photovoltaic or wind energy generation facility approved on or after October 8, 2011, is not a Water Demand Project if the facility would demand no more than 75 acre-feet of water annually. (F) A mixed -use project that includes one or more of the projects specified in subdivisions (A); (13), (C), (D), (E), or (G) of this section; (G) A project that would demand an amount of water equivalent to, or greater than, the amount of water required by a 500 dwelling unit project; or (H) For public water systems with fewer than 5,000 service connections, a project that meets the following criteria: (1) A proposed residential, business, commercial, hotel or motel, or industrial development that would account for an increase of 10 percent or more in the number of a public water system's existing service connections; or (2) A mixed -use project that would demand an amount of water equivalent to, or greater than, the amount of water required by residential development that would represent an increase of 10 percent or more in the number of the public water system's existing service connections. (State CEQA Guidelines Section 15155.) 11.84 "Waterway" means a bay, estuary, lake, pond, river, slough, or a perennial, intermittent, or ephemeral stream, lake, or estuarine -marine shoreline. 11.85 "Wetlands" has the same meaning as that term is construed in the regulations issued by the United States Army Corps of Engineers pursuant to the Clean Water Act. Thus, "wetlands" means areas that are inundated or saturated by surface or ground water at a frequency and duration sufficient to support, and that under normal circumstances do support, a prevalence of vegetation typically adapted for life in saturated soil conditions. Wetlands generally include swamps, marshes, bogs, and similar areas. (Public Resources Code Section 21159.21(d), incorporating Title 33, Code of Federal Regulations, Section 328.3.) 11.86 "Wildlife Habitat" means the ecological communities upon which wild animals, birds, plants, fish, amphibians, and invertebrates depend for their conservation and protection. (Public Resources Code Section 21159.21.) 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-179 Local Guidelines for Implementing the California Environmental Ouality Act (2019) DEFINITIONS 11.87 "Zoning Approval' means any enactment, amendment, or appeal of a zoning ordinance; granting of a conditional use permit or variance; or any other form of land use, subdivision, tract, or development approval required from the city or county having jurisdiction to permit the particular use of the property. 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-180 Local Guidelines for Implementing the California Environmental Ouality Act (2019) FORMS 12. FORMS See forms A — S which follow. Upon adoption of the Santa Ana Local Guidelines for Implementing the CEQA (2019) are adopted. These forms will be revised to include the City logo and general information. 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-181 PRELIMINARY EXEMPTION ASSESSMENT (Certificate of Determination When Attached to Notice of Exemption) 1. Name or description of project: 2. Project Location — Identifystreet address and cross streets or attach a map showing project site (preferably a USGS 15' or 7 1/2' topographical map identified by quadrangle name): 3. Entity or person undertaking project: A. B. Other (Private) (1) Name (2) Address 4. Staff Determination: The Lead Agency's Staff, having undertaken and completed a preliminary review of this project in accordance with the Lead Agency's "Local Guidelines for Implementing the California Environmental Quality Act (CEQA)" has concluded that this project does not require further environmental assessment because: a. ❑ The proposed action does not constitute a project under CEQA. b. ❑ The project is a Ministerial Project. C. ❑ The project is an Emergency Project. d. ❑ The project constitutes a feasibility or planning study. e. ❑ The project is categorically exempt. Applicable Exemption Class: f. ❑ The project is statutorily exempt. Applicable Exemption: g. ❑ The project is otherwise exempt on the following basis: h. ❑ The project involves another public agency which constitutes the Lead Agency. Name of Lead Agency: Date: Staff: Preliminary Exemption Assessment FORM "A" 75D-182 NOTICE OF EXEMPTION TO: FROM: ❑ (Public Office of Planning and Research Agency) P. O. Box 3044, Room 113 Sacramento, CA 95812-3044 ❑ Clerk of the Board of Supervisors Address or County Clerk County of 1. Project Title: 2. Project Applicant: 3. Project Location — Identify street address and cross streets or attach a map showing project site (preferably a USGS 15' or 7 1/2' topographical map identified by quadrangle name): 4. (a) Project Location — City: (b) Project Location— County: 5. Description of nature, purpose, and beneficiaries of Project: 6. Name of Public Agency approving project: 7. Name of Person or Agency undertaking the project, including any person undertaking an activity that receives financial assistance from the Public Agency as part of the activity or the person receiving a lease, permit, license, certificate, or other entitlement of use from the Public Agency as part of the activity: 8. Exempt status: (check one) (a) ❑ Ministerial project. (Pub. Res. Code § 21080(b)(1); State CEQA Guidelines § 15268) (b) ❑ Not a project. Notice of Exemption FORM `B" 75D-183 (c) ❑ Emergency Project. (Pub. Res. Code § 21080(b)(4); State CEQA Guidelines § 15269(b),(c)) (d) ❑ Categorical Exemption. State type and section number: (e) ❑ Declared Emergency. (Pub. Res. Code § 21080(b)(3); State CEQA Guidelines § 15269(a)) (f) ❑ Statutory Exemption. State Code section number: (g) ❑ Other. Explanation: 9. Reason why project was exempt: 10. Lead Agency Contact Person: [City to provide] Telephone: [City to provide] 11. If filed by applicant: Attach Preliminary Exemption Assessment (Form "A") before filing. 12. Has a Notice of Exemption been filed by the public agency approving the project? 0 Yes ❑ 0 No ❑ 13. Was a public hearing held by the Lead Agency to consider the exemption? 0 Yes ❑ 0 No ❑ If yes, the date of the public hearing was: Signature: Name: 0 ❑ Signed by Lead Agency 0 ❑ Signed by Applicant Date Received for Filing: (Clerk Stamp Here) Authority cited: Sections 21083 and 21110, Public Resources Code. Reference: Sections 21108, 21152, and 21152.1, Public Resources Code. Title: Notice of Exemption FORM `B" 75D-184 ENVIRONMENTAL IMPACT ASSESSMENT (STAFF RECOMMENDATION FOR INTERNAL USE ONLY) 1. Name or description of project: 2. Project Location — Identifystreet address and cross streets or attach a map showing project site (preferably a USGS 15' or 7 1/2' topographical map identified by quadrangle name): 3. Entity or Person undertaking project: A. B. Other (Private) (1) Name: (2) Address: 4. Staff Determination: The Lead Agency's staff, having undertaken and completed an Initial Study of this project in accordance with the Lead Agency's "Local Guidelines for Implementing the California Environmental Quality Act (CEQA)" for the purpose of ascertaining whether the proposed project may have a significant effect on the environment, has reached the following conclusion: a. ❑ The project could not have a significant effect on the environment; therefore, a Negative Declaration should be adopted. b. ❑ The Initial Study identified potentially significant effects on the environment but revisions in the project plans or proposals made by or agreed to by the applicant would avoid the effects, or mitigate the effects to a point where clearly no significant effects would occur; therefore a Mitigated Negative Declaration should be adopted. C. ❑ The project may have a significant effect on the environment; therefore, an Environmental Impact Report will be required. Date: Staff: Environmental Impact Assessment FORM "C" 75D-185 NOTICE OF INTENT TO ADOPT A NEGATIVE DECLARATION/ MITIGATED NEGATIVE DECLARATION Notice is hereby given that the public agency named below has completed an Initial Study of the following described project at the following location: Public Agency: Project Name: Project Description: Project Location — Identify street address and cross streets or attach a map showing project site (preferably a USGS 15' or 7 1/2' topographical map identified by quadrangle name): This Initial Study was completed in accordance with the Lead Agency's Guidelines for Implementing the California Environmental Quality Act. This Initial Study was undertaken for the purpose of deciding whether the project may have a significant effect on the environment. On the basis of such Initial Study, the Lead Agency's Staff has concluded that the project will not have a significant effect on the environment, and has therefore prepared a Draft Negative Declaration/Mitigated Negative Declaration. The Initial Study reflects the independent judgment of the Lead Agency. ❑ The Project site IS on a list compiled pursuant to Government Code section 65962.5. ❑ The Project site IS NOT on a list compiled pursuant to Government Code section 65962.5. ❑ The proposed project IS considered a project of statewide, regional or areawide significance. ❑ The proposed project IS NOT considered a project of statewide, regional or areawide significance. ❑ The proposed project WILL affect highways or other facilities under thejurisdiction of the State Department of Transportation. ❑ The proposed project WILL NOT affect highways or other facilities under thejurisdiction of the State Department of Transportation. ❑ A scoping meeting WILL be held by the Lead Agency. ❑ A seeping meeting WILL NOT be held by the Lead Agency. If the project meets the criteria requiring the seeping meeting, or if the agency voluntarily elects to hold such a meeting, the date, time and location of the scoping meeting are as follows: Date: Time: Location: Copies of the Initial Study and Draft Negative Declaration/Mitigated Negative Declaration are on file and are available for public review at the Lead Agency's office, located at: The proposed Negative Declaration or Mitigated Negative Declaration can be obtained in electronic format by the following method: Lead Agency address: Comments will be received from [FILL-IN FIRST DAY OF COMMENT PERIOD] to [FILL-IN LAST DAY OF COMMENT PERIOD] Any person wishing to comment on this matter must submit such comments, in writing, to the Lead Agency prior to [FILL-IN LAST DAY OF COMMENT PERIOD]. Comments of all Responsible Agencies are also requested. NOI to Adopt Neg. Dec., Mit. Neg. Dec. 1 FORM "D" 75D-186 The Lead Agency will consider the project and the Draft Negative Declaration/Mitigated Negative Declaration at its meeting on: Date: Time: If the Lead Agency finds that the project will not have a significant effect on the environment, it may adopt the Negative Declaration/Mitigated Negative Declaration. This means that the Lead Agency may proceed to consider the project without the preparation of an Environmental Impact Report. Date Received for Filing: _ (Clerk Stamp Here) Staff Title NOI to Adopt Neg. Dec., Mit. Neg. Dec. 2 FORM "D" 75D-187 NEGATIVE DECLARATION 1. Name or description of project: 2. Project Location—Identifystreet address and cross streets or attach a map showing project site (preferably a USGS 15' or 7 1/2' topographical map identified by quadrangle name): 3. Entity or Person undertaking project: A. Entity (1) Name: B. Other (Private) (1) Name: (2) Address: The Lead Agency, having reviewed the Initial Study of this proposed project, having reviewed the written comments received prior to the public meeting of the Lead Agency, and having reviewed the recommendation of the Lead Agency's Staff, does hereby find and declare that the proposed project will not have a significant effect on the environment. A brief statement of the reasons supporting the Lead Agency's findings are as follows: The Lead Agency hereby finds that the Negative Declaration reflects its independent judgment. A copy of the Initial Study is attached. The location and custodian of the documents and any other material which constitute the record of proceedings upon which the Lead Agency based its decision to adopt this Negative Declaration are as follows: Phone No.: Date Received for Filing: Staff Negative Declaration FORM "E" 75D-188 TO: ❑ Clerk of the Board of Supervisors FROM: Public Agency/Lead Agency: or Address: ❑ County Clerk Contact: County ofi Phone: Address: TO: ❑ Office of Planning and Research Lead Agency (if different from above) P. O. Box 3044 Sacramento, CA 95812-3044 Address: (overnight or hand delivery) ❑ 1400 Tenth Street, Rm. 113 Contact: Sacramento, CA 95814 Phone: SUBJECT: Filing of Notice of Determination in compliance with Section 21108 or 21152 of the Public Resources Code. State Clearinghouse Number (If submitted to SCH): Project Title: Project Applicant: Specific Project Location — Identify street address and cross street or attach a map showing project site (preferably a USGS 15' or 7 %:' topographical map identified by quadrangle name): General Project Location (City and/or County): Project Description: Identify the person or entity undertaking the project, including any private applicant, any other person undertaking an activity that receives financial assistance from the Public Agency as part of the project, and any person receiving a lease, permit, license, certificate, or other entitlement of use from the Public Agency as part of the project. This is to advise that the (❑ Lead Agency or ❑ Responsible Agency) has approved the above described project on and has made the following determinations regarding the above described project: 1. LJ The project will have a significant effect on the environment. ❑ The project will NOT have a significant effect on the environment Notice of Determination 75D-189 FORM "F" 2. ❑ An Environmental Impact Report was prepared and certified for this project pursuant to the provisions of CEQA and reflects the independent judgment of the Lead Agency. ❑ A Negative Declaration was prepared for this project pursuant to the provisions of CEQA and reflects the independent judgment of the Lead Agency. ❑ A Mitigated Negative Declaration was prepared for this project pursuant to the provisions of CEQA and reflects the independent judgment of the Lead Agency. 3. ❑ Mitigation measures were made a condition of the approval of the project. ❑ Mitigation measures were NOT made a condition of the approval of the project. 4. ❑ A Mitigation Monitoring or Reporting Plan was adopted for this project. ❑ A Mitigation Monitoring or Reporting Plan was NOT adopted for this project. 5. ❑ A Statement of Overriding Considerations was adopted for this project. ❑ A Statement of Overriding Considerations was NOT adopted for this project 6. ❑ Findings were made pursuant to the provisions of CEQA. ❑ Findings were NOT made pursuant to the provisions of CEQA. This is to certify that the Final EIR with comments and responses and record of project approval, or the Negative Declaration, is available to General Public at: Custodian: Location: Date; Signature Name: Title: Date Received for Filing: Authority cited: Sections 21083, Public Resources Code. Reference Section 21000-21174, Public Resources Code. Notice of Determination 75D-190 NOTICE OF PREPARATION TO: [Insert Responsible Agency or Trustee Agency] FROM: [Insert Address] SUBJECT: Notice of Preparation of a Draft Environmental Impact Report. The [INSERT AGENCY NAME] will be the Lead Agency and will prepare an environmental impact report for the project identified below. We need to know the views of your agency as to the scope and content of the environmental information which is germane to your agency's statutory responsibilities in connection with the proposed project. Your agency will need to use the EIR prepared by our agency when considering your permit or other approval for the project. The Project description, location, and the potential environmental effects are contained in the attached materials. ❑ A copy of the Initial Study IS attached. ❑ A copy of the Initial Study IS NOT attached. ❑ The proposed project IS considered a project of statewide, regional or areawide significance. ❑ The proposed project IS NOT considered a project of statewide, regional or areawide significance. ❑ The proposed project WILL affect highways or other facilities under thejurisdiction of the State Department of Transportation. ❑ The proposed project WILL NOT affect highways or other facilities under the jurisdiction of the State Department of Transportation. ❑ A scoping meeting WILL be held by the Lead Agency. ❑ A scoping meeting WILL NOT be held by the Lead Agency. If the project meets the criteria requiring the scoping meeting, or if the agency voluntarily elects to hold such a meeting, the date, time and location of the scoping meeting are as follows: Date: Time: Location: Due to the time limits mandated by State law, your response must be sent at the earliest possible date, but not later than 30 days after receipt of this notice. Please send your response to [INSERT NAME] at the address shown above. We will need the name of a contact person in your agency. Project Title: Project Location— Specific: Identify street address and cross street or attach a map showing project site (preferably a U.S.G.S. 15' or 7 %a' topographical map identified by quadrangle name): Notice of Preparation I FORM "G" 75D-191 Project Description: Project Applicant (if any): California Environmental Protection Agency Hazardous Waste List (if applicable): Date: Signature: Name: Title: Telephone: Consulting firm retained to prepare draft EIR (if applicable): Name: Address: City/State/Zip: Contact Person: Reference: California Code of Regulations, Title 14, (CEQA Guidelines) Sections 15082(a), 15103, 15375. Notice of Preparation 2 FORM "G" 75D-192 NOTICE OF COMPLETION & ENVIRONMENTAL DOCUMENT TRANSMITTAL SCH No.: For U.S. Mail: State Clearinghouse, PO Box 3044, Sacramento, CA 95812-3044 (916) 445-0613 For Hand Delivery/Street Address: 1400 Tenth Street, Sacramento, CA 95814 PROJECTTITLE LEAD AGENCY CONTACT PERSON STREET ADDRESS TELEPHONE CITY ZIP CODE COUNTY PROJECT LOCATION COUNTY CITYINEAREST COMMUNITY LAT. / LONG.: ' N/ ° ' W CROSS STREETS ZIP CODE TOTAL ACRES ASSESSOR'S PARCEL NO. SECTION TOWNSHIP RANGE BASE WITHIN 2 MILES: STATE HIGHWAY NO. WITHIN 2 MILES: WATERWAYS WITHIN 2 MILES: AIRPORTS WITHIN 2 MILES: RAILWAYS WITHIN 2 MILES: SCHOOLS DOCUMENTTYPE CEQA NEPA OTHER ❑ NOP ❑ Supplemental EIR ❑ NOI ❑ Joint Document ❑ Early Cons ❑ Subsequent EIR ❑ EA ❑ Final Document ❑ Neg Dec ❑ (Prior SCH No.): ❑ Draft EIS ❑ Other ❑ Mit Nag Dec ❑ Other. ❑ FONSI ❑ Draft EIR LOCAL ACTION TYPE ❑ General Plan Update ❑ Specific Plan ❑ Rezone ❑ Annexation ❑ General Plan Amendment ❑ Master Plan ❑ Prezone ❑ Redevelopment ❑ General Plan Element ❑ Planned Unit Development ❑ Use Permit ❑ Coastal Permit ❑ Community Plan ❑ Site Plan ❑ Land Division (Subdivision, etc.) ❑ 1 Other. DEVELOPMENT TYPE ❑ Residential: Units: Acres: ❑ Water Facilities: Type: MGD: ❑ Office; Sq. fL Acres: Employees: ❑ Transportation: Type: ❑ Commercial: Sq. fL Acres: Employees: ❑ Mining: Mineral: ❑ Industrial: Sq. fl_ Acres: Employees: ❑ Power. Type: MW: ❑ Educational: ❑ Waste Treatment: Type: ❑ Recreational: ❑ Hazardous Waste: Type: ❑ Other. Notice of Completion —Environmental Doc. Transmittal 1 FORM "H° 75D-193 PROJECT ISSUES DISCUSSED IN DOCUMENT: ❑ AestheficMsual ❑ Geologic/Seismic ❑ Toxic/Hazardous ❑ Agricultural Land ❑ Minerals ❑ Traffic/Circulation ❑ Air Quality ❑ Noise ❑ Vegetation ❑ Archaeological/Historical ❑ Population/Housing Balance ❑ WaterQuality ❑ Biological Resources ❑ Public Services/Facilitfes ❑ Water Supply/Groundwater ❑ Coastal Zone ❑ Recreation/Parks ❑ Welland/Riparian ❑ Drainage/Absorption ❑ Schools/Universities ❑ Wildlife ❑ Economic/Jobs ❑ Septic Systems ❑ Growth Inducement ❑ Fiscal ❑ Sewer Capacity ❑ Land Use ❑ Flood PlaiNFlooding ❑ Soil Erosion/Compaction/Grading ❑ Cumulative Effects ❑ Forest Land/Fire Hazard ❑ Solid Waste ❑ 1 Greenhouse Gases ❑ Other. PRESENT LAND USEIZONINGIGENERAL PLAN USE DESIGNATION: PROJECT DESCRIPTION (please use a separate page if necessary) NOTE: The State Clearin0house will assign identification numbers for all now orclects If a SCH number already ists for a Pro'ect (e o Notice or Preparation or Previous draft document) ofease fill in. Revised 2010 Reviewing Agencies Checklist Appendix C KEY: S = Document sent by lead agency X = Document sent by SCH Lead Agencies may recommend State Clearinghouse distribution my marking agencies below. ❑ Air Resources Board ❑ Native American Heritage Commission ❑ Scaling & Waterways, Department of ❑ Office of Historic Preservation ❑ California Emergency Management Agency ❑ Office of Public School Construction ❑ California Hlqhway Patrol ❑ Parks & Recreation, Department of ❑ Caltrans District# ❑ Pesticide Re ulaffon, Department of ❑ Caltrans Division of Aeronautics ❑ Public Utilities Commission ❑ Caltrans Planning ❑ 1 Re Tonal WQCB # ❑ Central Valley Flood Protection Board ❑ Resources Agency ❑ Coachella Valley Mountains Conservancy ❑ Resources Recycling and Recovery, Department of ❑ Coastal Commission ❑ S.F. Bay Conservation & Development Commission ❑ Colorado River Board ❑ San Gabriel & Lower Los Angeles Rivers & Mountains Conservancy ❑ Conservation, Department of ❑ San Joaquin River Conservancy ❑ Comections, Department of ❑ Santa Monica Mountains Conservancy ❑ Delta Protection Commission ❑ State Lands Commission ❑ Education, Department of ❑ SWRCB: Clean Water Grants ❑ Energy Commission ❑ SWRCB: Water Quality ❑ Fish & Game Region # ❑ SWRCB: Water Rights ❑ Food & Agriculture, Department of ❑ Tahoe Regional Planning Agency ❑ Forestry & Fire Protection, Department of ❑ Toxic Substances Control, Department of ❑ General Services, Department of ❑ Water Resources, Department of ❑ Health Services, Department of ❑ Other ❑ Housing & Community Development ❑ Other. Notice of Completion —Environmental Doc. Transmittal 2 FORM "H° 75D-194 Local Public Review Period (to be filled in by lead agency): Starting Date: Ending Date: Address where copies of the Draft EIR are available and a description of how the Draft EIR can be provided in an electronic format: Lead Agency (Complete if applicable): Consulting Firm: Address: City/State0p: Contact Phone: Signature of Lead Agency Representative: Date: Authority cited: Section 21063, Public Resources Code. Reference: Section 21161, Public Resources Code. 11 For SCH Use Only: 11 Date Received at SCH Date Review Starts Date to Agencies Dale to SCH Clearance Date Notes: Notice of Completion —Environmental Doc. Transmittal 3 FORM H. 75D-195 ENVIRONMENTAL INFORMATION FORM (For private projects, this form must be completed by private project applicant to assist staff in completing Initial Study) Date Filed: GENERAL INFORMATION 1. Developer or project sponsor Name: Address: 2. Project Location — Identify street address and cross streets or attach a map showing project site (preferably a USGS 15' or 7 I/2' topographical map identified by quadrangle name): 3. Assessor's Block and Lot Number 4. Person to be contacted regarding Name: this project Address: Telephone: 5. Permit Application Number for project 6. Existing Zoning District 7. Proposed use of site (project for which this form is filed) List and describe any other related permits and other public approvals required for this project, including those required by city, regional, state and federal agencies: 8. Site size: 9. Square footage: 10. Number of floors of construction: 11. Amount of off-street parking provided: 12. Attach plans: 13. Proposed scheduling: 14. Associated projects: 15. Anticipated incremental development: Environmental Information Form 1 FORM "I" 75D-196 16. If residential, include the number of units, schedule of unit sizes, range of sales prices or rents and type of household size expected. 17. If commercial, indicate the type, whether neighborhood, city or regionally oriented, square footage of sales area and loading facilities. 18. If industrial, indicate type, estimated employment per shift and loading facilities. 19. If institutional, indicate the major function, estimated employment per shift, estimated occupancy, loading facilities and community benefits to be derived from the project. 20. If the project involves a variance, conditional use or rezoning application, state this and indicate clearly why the application is required. Are the following items applicable to the project or its effects? Discuss below all items checked yes (attach additional sheets as necessary). YES NO ❑ ❑ 21. Change in existing features of any bays, tidelands, beaches, lakes, hills or substantial alteration of ground contours. ❑ ❑ 22. Change in scenic views or vistas from existing residential areas or public lands or roads. ❑ ❑ 23. Change in pattern, scale or character of general area of project. ❑ ❑ 24. Significant amounts of solid waste or litter. ❑ ❑ 25. Change in dust, ash, smoke, fumes or odors in vicinity. ❑ ❑ 26. Change in ocean, bay, lake, stream or ground water quality or quantity, or alteration of existing drainage patterns. ❑ ❑ 27. Substantial change in existing noise or vibration levels in the vicinity. ❑ ❑ 28. Site on filled land or on slope of 10 percent or more. ❑ ❑ 29. Use or disposal of potentially hazardous materials, such as toxic substances, flammables or explosives. ❑ ❑ 30. Substantial change in demand for municipal services (police, fire, water, sewage, etc.). ❑ ❑ 31. Substantial increase in fossil fuel consumption (electricity, oil, natural gas, etc.). ❑ ❑ 32. Relationship to a larger project or series of projects. ❑ ❑ 33. Has a prior environmental impact report been prepared for a program, plan, policy or ordinance consistent with this project? Environmental Information Form 2 FO12M "I" 75D-197 YES NO ❑ ❑ 34. If you answered yes to question 33, may this project cause significant effects on the environment that were not examined in the prior EIR? ❑ ❑ 35. Will the project require the import or export of soil? If so, how much? From where will import come? To where will export go? What is the proposed haul route? ENVIRONMENTAL SETTING 36. Describe the project site as it exists before the project, including information on topography, soil stability, plants and animals, and any cultural, historical or scenic aspects. Describe any existing structures on the site, and the use of the structures. Attach photographs of the site. (Snapshots or instant photos acceptable.) 37. Describe the surrounding properties, including information on plants and animals and any cultural, historical or scenic aspects. Indicate the type of land use (residential, commercial, etc.), intensity of land use (one -family, apartment houses, shops, department stores, etc.), and scale of development (height, frontage, set -back, rear yard, etc.). Attach photographs of the vicinity. (Snapshots or instant photos acceptable.) CERTIFICATION: I hereby certify that the statements furnished above and in the attached exhibits present the data and information required for this initial evaluation to the best of my ability, and that the facts, statements, and information presented are true and correct to the best of my knowledge and belief. Date: Signature: For: Environmental Information Form 3 FORM "p' 75D-198 INITIAL STUDY NOTE: The following is a sample form that may be tailored by the Lead Agency to satisfy project circumstances. It may be used to meet the requirements for an initial study when the criteria set forth in the State and Local CEQA Guidelines have been met. Substantial evidence of potential impacts that are not listed on this form must also be considered. The sample questions in this form are intended to encourage thoughtful assessment of impacts, and do not necessarily represent thresholds of significance. 1. Project Title: 2. Lead Agency Name and Address: 3. Contact Person and Phone Number: 4. Project Location: 5. Project Sponsor's Name and Address: 6. General Plan Designation: 7. Zoning: 8. Description of Project: (Describe the whole action involved, including but not limited to later phases of the project, and any secondary, support, or off -site features necessary for its implementation. Attach additional sheet(s) if necessary.) 9. Surrounding Land Uses and Setting: (Briefly describe the project's surroundings.) 10. Other public agencies whose approval is required (e.g., permits, financing approval, or participation agreement): 11. Have California Native American tribes traditionally and culturally affiliated with the project area requested consultation pursuant to Public Resources Code section 21080.3.1? If so, is there a plan for consultation that includes, for example, the determination of significance of impacts to tribal cultural resources, procedures regarding confidentiality, etc.? Note: Conducting consultation early in the CEQA process allows tribal govenunents, lead agencies, and project proponents to discuss the level of environmental review, identify and address potential adverse impacts to tribal cultural resources, and reduce the potential for delay and conflict in the environmental review process. (See Public Resources Code section 21080.3.2.) Information may also be available from the California Native American Heritage Commission's Sacred Lands File per Public Resources Code section 5097.96 and the California Historical Resources Information System administered by the California Office of Historic Preservation. Please also note that Public Resources Code section 21082.3(c) contains provisions specific to confidentiality. Initial Study Form Page 1 of 15 FORM "J" 75D-199 ENVIRONMENTAL FACTORS POTENTIALLY AFFECTED: The environmental factors checked below would be potentially affected by this project, involving at least one impact that is a "Potentially Significant Impact" as indicated by the checklist on the following pages. ❑ Aesthetics ❑ ❑ Biological Resources ❑ Greenhouse Gas Emissions ❑ Land Use / Planning ❑ rl Population / Housing ❑ Transportation ❑ Tribal Cultural Resources Agriculture/Forestry Resources Cultural Resources Hazards & Hazardous Materials Mineral Resources Public Services Utilities / Service Systems Wildfire ❑ Air Quality ❑ Geology / Soils Hydrology / Water Quality Noise Recreation ❑ Mandatory Findings of Significance ❑ Energy DETERMINATION (To be completed by the Lead Agency): On the basis of this initial evaluation: I find that the proposed project COULD NOT have a significant effect on the environment, and a NEGATIVE DECLARATION will be prepared. I find that although the proposed project could have a significant effect on the environment, there will not be a significant effect in this case because revisions in the project have been made by or agreed to by the project proponent. A MITIGATED NEGATIVE DECLARATION will be prepared. I find that the proposed project MAY have a significant effect on the environment, and an ENVIRONMENTAL IMPACT REPORT is required. ❑ I find that the proposed project MAY have a "potentially significant' or "potentially significant unless mitigated" impact on the environment, but at least one effect 1) has been adequately analyzed in an earlier document pursuant to applicable legal standards, and 2) has been addressed by mitigation measures based on the earlier analysis as described on attached sheets. An ENVIRONMENTAL IMPACT REPORT is required, but it must analyze only the effects that remain to be addressed. ❑ I find that although the proposed project could have a significant effect on the environment, because all potentially significant effects (a) have been analyzed adequately in an earlier EIR or NEGATIVE DECLARATION pursuant to applicable standards, and (b) have been avoided or mitigated pursuant to that earlier EIR or NEGATIVE DECLARATION, including revisions or mitigation measures that are imposed upon the proposed project, nothing further is required. Signature Printed Name Date For Initial Study Form Page 2 of 15 FORM "J" 75D-200 EVALUATION OF ENVIRONMENTAL IMPACTS: 1) A brief explanation is required for all answers except "No Impact" answers that are adequately supported by the information sources a Lead Agency cites in the parentheses following each question. A "No Impact" answer is adequately supported if the referenced information sources show that the impact simply does not apply to projects like the one involved (e.g. the project falls outside a fault rupture zone). A "No Impact" answer should be explained where it is based on project -specific factors as well as general standards (e.g. the project will not expose sensitive receptors to pollutants, based on a project -specific screening analysis). 2) All answers must take account of the whole action involved, including off -site as well as on -site, cumulative as well as project -level, indirect as well as direct, and construction as well as operational impacts. 3) Once the Lead Agency has determined that a particular physical impact may occur, then the checklist answers must indicate whether the impact is potentially significant, less than significant with mitigation, or less than significant. "Potentially Significant Impact" is appropriate if there is substantial evidence that an effect is significant. If there are one or more "Potentially Significant Impact" entries when the determination is made, an EIR is required. 4) "Negative Declaration: Less Than Significant With Mitigation Incorporated" applies where the incorporation of mitigation measures has reduced an effect from "Potentially Significant Impact" to a "Less than Significant Impact." The Lead Agency must describe the mitigation measures, and briefly explain how they reduce the effect to a less than significant level (mitigation measures from Section XVII, "Earlier Analyses," may be cross- referenced). 5) Earlier analyses may be used where, pursuant to the tiering, program EIR, or other CEQA process, an effect has been adequately analyzed in an earlier EIR or negative declaration. Section 15063(c)(3)(D). In this case, a brief discussion should identify the following: a) Earlier Analyses Used. Identify and state where they are available for review. b) Impacts Adequately Addressed. Identify which effects from the above checklist were within the scope of and adequately analyzed in an earlier document pursuant to applicable legal standards, and state whether such effects were addressed by mitigation measures based on the earlier analysis. c) Mitigation Measures. For effects that are "Less than Significant with Mitigation Measures Incorporated," describe the mitigation measures which were incorporated or refined from the earlier document and the extent to which they address site -specific conditions for the project. 6) Lead agencies are encouraged to incorporate into the checklist references to information sources for potential impacts (e.g. general plans, zoning ordinances). Reference to a previously prepared or outside document should, where appropriate, include a reference to the page or pages where the statement is substantiated. 7) Supporting Information Sources. A source list should be attached, and other sources used or individuals contacted should be cited in the discussion. S) This is only a suggested form, and lead agencies are free to use different formats; however, lead agencies should normally address the questions from this checklist that are relevant to a project's environmental effects in whatever format is selected. 9) The explanation of each issue should identify: a) the significance criteria or threshold, if any, used to evaluate each question; and b) the mitigation measure identified, if any, to reduce the impact to less than significance. Initial Study Form Page 3 of 15 FORM "P' 75D-201 SAMPLE QUESTION Issues: I. AESTHETICS. Except as provided in Public Resources Code section 21099, would the project: a) Have a substantial adverse effect on a scenic vista? b) Substantially damage scenic resources, including, but not limited to, trees, rock outcroppings, and historic buildings within a state scenic highway? c) In non -urbanized areas, substantially degrade the existing visual character or quality of public views of the site and its surroundings? (Public views are those that are experienced from publicly accessible vantage point). If the project is in an urbanized area, would the project conflict with applicable zoning and other regulations governing scenic quality?) d) Create a new source of substantial light or glare which would adversely affect day or nighttime views in the area? Less Than Significant Potentially With Less Than Significant Mitigation Significant No Impact Incorporated Impact Impact ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ Initial Study Form Page 4 of 15 FORM "P' 75D-202 H. AGRICULTURE AND FOREST RESOURCES -- In determining whether impacts to agricultural resources are significant environmental effects, lead agencies may refer to the California Agricultural Land Evaluation and Site Assessment Model (1997) prepared by the California Dept. of Conservation as an optional model to use in assessing impacts on agriculture and farmland. In determining whether impacts to forest resources, including timberland, are significant environmental effects, lead agencies may refer to information compiled by the California Department of Forestry and Fire Protection regarding the state's inventory of forest land, including the Forest and Range Assessment Project and the Forest Legacy Assessment project; and forest carbon measurement methodology provided in Forest protocols adopted by the California Air Resources Board. -- Would the project: a) Convert Prime Farmland, Unique Farmland, or Farmland of Statewide Importance (Farmland), as shown on the maps prepared pursuant to the Farmland Mapping and Monitoring Program of the California Resources Agency, to non- agricultural use? b) Conflict with existing zoning for agricultural use, or a Williamson Act contract? c) Conflict with existing zoning for, or cause rezoning of, forest land (as defined in Public Resources Code section 12220(g)), timberland (as defined by Public Resources Code section 4526), or timberland zoned Timberland Production (as defined by Government Code section 51104(g))? d) Result in the loss of forest land or conversion of forest land to non -forest use? e) Involve other changes in the existing environment which, due to their location or nature, could result in conversion of Farmland, to non-agricultural use or conversion of forest land to non -forest use? Less Than Significant Potentially With Less Than Significant Mitigation Significant No Impact Incorporated Impact Impact ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ Initial Study Fmm Page 5 of 15 FORM "P' 75D-203 Less Than Significant Potentially With Less Than Significant Mitigation Significant No Impact Incorporated Impact Impact III. AIR QUALITY -- Where available, the significance criteria established by the applicable air quality management district or air pollution control district may be relied upon to make the following determinations. Would the project: a) Conflict with or obstruct implementation of ❑ ❑ El ❑ the applicable air quality plan? b) Result in a cumulatively considerable net ❑ ❑ El 1-1 increase of any criteria pollutant for which the project region is non -attainment under an applicable federal or state ambient air quality standard? c) Expose sensitive receptors to substantial El ❑ ❑ ❑ pollutant concentrations? d) Result in other emissions (such as those ❑ ❑ ❑ leading to odors adversely affecting a substantial number of people? IV. BIOLOGICAL RESOURCES -- Would the project: a) Have a substantial adverse effect, either ❑ ❑ ❑ ❑ directly or through habitat modifications, on any species identified as a candidate, sensitive, or special status species in local or regional plans, policies, or regulations, or by the California Department of Fish and Game or U.S. Fish and Wildlife Service? b) Have a substantial adverse effect on any ❑ ❑ ❑ ❑ riparian habitat or other sensitive natural community identified in local or regional plans, policies, regulations or by the California Department of Fish and Game or U.S. Fish and Wildlife Service? c) Have a substantial adverse effect on state ❑ ❑ ❑ ❑ or federally protected wetlands (including, but not limited to, marsh, vernal pool, coastal, etc.) through direct removal, filling, hydrological interruption, or other means? d) Interfere substantially with the movement ❑ ❑ of any native resident or migratory fish or wildlife species or with established native resident or migratory wildlife corridors, or impede the use of native wildlife nursery sites? Initial Study Form Page 6 of 15 FORM " J" 75D-204 e) Conflict with any local policies or ordinances protecting biological resources, such as a tree preservation policy or ordinance? f) Conflict with the provisions of an adopted Habitat Conservation Plan, Natural Community Conservation Plan, or other approved local, regional, or state habitat conservation plan? V. CULTURAL RESOURCES -- Would the project: a) Cause a substantial adverse change in the significance of a historical resource pursuant to § 15064.5? b) Cause a substantial adverse change in the significance of an archaeological resource pursuant to § 15064.5? c) Disturb any human remains, including those interred outside of dedicated cemeteries? VI. ENERGY. Would the project: a) Result in potentially significant environmental impact due to wasteful, inefficient, or unnecessary consumption of energy resources, during project construction or operation? b) Conflict with or obstruct a state or local plan for renewable energy or energy efficiency? VII. GEOLOGY AND SOILS -- Would the project: a) Directly or indirectly cause potential substantial adverse effects, including the risk of loss, injury or death involving: i) Rupture of a known earthquake fault, as delineated on the most recent Alquist- Priolo Earthquake Fault Zoning Map issued by the State Geologist for the area or based on other substantial evidence of a known fault? Refer to Division of Mines and Geology Special Publication 42. ii) Strong seismic ground shaking? Less Than Significant Potentially With Less Than Significant Mitigation Significant No Impact Incorporated Impact Impact ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ Initlal Study Fmm Page 7 of 15 FORM "J" 75D-205 ►® iii) Seismic -related ground failure, including liquefaction? iv) Landslides? b) Result in substantial soil erosion or the loss of topsoil? c) Be located on a geologic unit or soil that is unstable, or that would become unstable as a result of the project, and potentially result in on- or off -site landslide, lateral spreading, subsidence, liquefaction or collapse? d) Be located on expansive soil, as defined in Table 18-1-B of the Uniform Building Code, creating substantial direct or indirect risks to life or property? e) Have soils incapable of adequately supporting the use of septic tanks or alternative waste water disposal systems where sewers are not available for the disposal of waste water? f) Directly or indirectly destroy a unique paleontological resource or site or unique geologic feature? GREENHOUSE GAS EMISSIONS -- Would the project: a) Generate greenhouse gas emissions, either directly or indirectly, that may have a significant impact on the environment? b) Conflict with an applicable plan, policy or regulation adopted for the purpose of reducing the emission of greenhouse gases? HAZARDS AND HAZARDOUS MATERIALS -- Would the project: a) Create a significant hazard to the public or the environment through the routine transport, use, or disposal of hazardous materials? Less Than Significant Potentially With Less Than Significant Mitigation Significant No Impact Incorporated Impact Impact ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ Initial Study Folm Page 8 of 15 FORM "J" 75D-206 PA b) Create a significant hazard to the public or the environment through reasonably foreseeable upset and accident conditions involving the release of hazardous materials into the environment? c) Emit hazardous emissions or handle hazardous or acutely hazardous materials, substances, or waste within one -quarter mile of an existing or proposed school? d) Be located on a site which is included on a list of hazardous materials sites compiled pursuant to Government Code section 65962.5 and, as a result, would it create a significant hazard to the public or the environment? e) For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project result in a safety hazard or excessive noise for people residing or working in the project area? f) Impair implementation of or physically interfere with an adopted emergency response plan or emergency evacuation plan? g) Expose people or structures, either directly or indirectly, to a significant risk of loss, injury or death involving wildland fires? HYDROLOGY AND WATER QUALITY -- Would the project: a) Violate any water quality standards or waste discharge requirements or otherwise substantially degrade surface or ground water quality? b) Substantially decrease groundwater supplies or interfere substantially with groundwater recharge such that the project may impede sustainable groundwater management of the basin? Less Than Significant Potentially With Less Than Significant Mitigation Significant No Impact Incorporated Impact Impact ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ Initial Study Fmm Page 9 of 15 FORM " J" 75D-207 Less Than Significant Potentially With Less Than Significant Mitigation Significant No Impact Incorporated Impact Impact c) Substantially alter the existing drainage ❑ ❑ ❑ pattern of the site or area, including through the alteration of the course of a stream or river or through the addition of impervious surfaces, in a manner which would: i) result in substantial erosion or siltation El ❑ on- or off -site; ii) substantially increase the rate or ❑ ❑ ❑ amount of surface runoff in a manner which would result in flooding on- or offsite; iii) create or contribute runoff water which ❑ would exceed the capacity of existing or planned stormwater drainage systems or provide substantial additional sources of polluted runoff; or iv) impede or redirect flood flows? ❑ ❑ ❑ ❑ d) In flood hazard, tsunami, or seiche zones, ❑ risk release of pollutants due to project inundation? e) Conflict with or obstruct implementation of ❑ ❑ ❑ a water quality control plan or sustainable groundwater management plan? XI. LAND USE AND PLANNING -- Would the project: a) Physically divide an established ❑ community? b) Cause a significant environmental impact ❑ El El due to a conflict with any land use plan, policy, or regulation adopted for the purpose of avoiding or mitigating an environmental effect? XII. MINERAL RESOURCES -- Would the project: a) Result in the loss of availability of a known ❑ El ❑ mineral resource that would be of value to the region and the residents of the state? Initial Study Form Page 10 of 15 FORM "J" 75D-208 Less Than Significant Potentially With Less Than Significant Mitigation Significant No Impact Incorporated Impact Impact b) Result in the loss of availability of a ❑ ❑ ❑ locally -important mineral resource recovery site delineated on a local general plan, specific plan or other land use plan? XIII. NOISE -- Would the project result in: a) Generation of a substantial temporary or ❑ ❑ ❑ ❑ permanent increase in ambient noise levels in the vicinity of the project in excess of standards established in the local general plan or noise ordinance, or applicable standards of other agencies? b) Generation of excessive groundbome vibration or groundborne noise levels? c) For a project located within the vicinity of ❑ ❑ a private airstrip or an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project expose people residing or working in the project area to excessive noise levels? XIV. POPULATION AND HOUSING -- Would the project: a) Induce substantial unplanned population ❑ ❑ growth in an area, either directly (for example, by proposing new homes and businesses) or indirectly (for example, through extension of road or other infrastructure)? b) Displace substantial numbers of existing people or housing, necessitating the construction of replacement housing elsewhere? XV. PUBLIC SERVICES -- Would the project: a) Result in substantial adverse physical ❑ ❑ impacts associated with the provision of new or physically altered governmental facilities, need for new or physically altered governmental facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times or other performance objectives for any of the public services: Initial Study Fotm Page 11 of 15 FORM "J" 75D-209 Less Than Significant Potentially With Less Than Significant Mitigation Significant No Impact Incorporated Impact Impact Fire protection? ❑ El El ❑ Police protection? ❑ ❑ ❑ ❑ Schools? El ❑ ❑ Parks? ❑ ❑ El Other public facilities? ❑ ❑ ❑ ❑ XVI. RECREATION -- a) Would the project increase the use of ❑ ❑ existing neighborhood and regional parks or other recreational facilities such that substantial physical deterioration of the facility would occur or be accelerated? b) Does the project include recreational ❑ facilities or require the construction or expansion of recreational facilities which have an adverse physical effect on the environment? XVII. TRANSPORTATION --Would the project: a) Conflict with program plan, ordinance or ❑ ❑ ❑ policy addressing the circulation system, including transit, roadway, bicycle and pedestrian facilities? b) Conflict or be inconsistent with CEQA ❑ ❑ ❑ ❑ Guidelines section 15064.3' or will conflict with an applicable congestion management program, including, but not limited to, level of service standards and travel demand measures, or other standards established by the county congestion management agency for designated roads or highways? c) Substantially increase hazards due to a El ❑ ❑ ❑ geometric design feature (e.g., sharp curves or dangerous intersections) or incompatible uses (e.g., farm equipment)? d) Result in inadequate emergency access? ❑ El El t CEQA Guidelines section 15064.3(c) provides that a lead agency"may elect to be governed by the provisions" of the section immediately; otherwise, the section's provisions apply July 1, 2020. Here, the District has not elected to be governed by Section 15064.3. Accordingly, an analysis of vehciles miles traveled (VMT) is not necessary to determine whether a proposed project will have a significant transportation impact. Initial Study Form Page 12 of 15 FORM "J" 75D-210 Less Than Significant Potentially With Less Than Significant Mitigation Significant No Impact Incorporated Impact Impact XVIL TRIBAL CULTURAL RESOURCES — Would the project: a) Cause a substantial adverse change in the El 11 significance of a tribal cultural resource, defined in Public Resources Code section 21074 as either a site, feature, place, cultural landscape that is geographically defined in terms of the size and scope of the landscape, sacred place, or object with cultural value to a California Native American tribe, and that is: i) Listed or eligible for listing in the El El El 11 California Register of Historical Resources, or in a local register of historical resources as defined in Public Resources Code section 5020.1(k), or ii) A resource determined by the lead 11 El El 11 agency, in its discretion and supported by substantial evidence, to be significant pursuant to criteria set forth in subdivision (c) of Public Resources Code section 5024.1. In applying the criteria set forth in subdivision (c) of Public Resources Code section 5024.1, the lead agency shall consider the significance of the resource to a California Native American tribe. XVIII. UTILITIES AND SERVICE SYSTEMS -- Would the project: a) Require or result in the relocation or ❑ ❑ ❑ construction of new or expanded water, wastewater treatment or storm water drainage, electric power, natural gas, or telecommunications facilities, the construction or relocation of which could cause significant environmental effects? b) Have sufficient water supplies available to ❑ ❑ ❑ ❑ serve the project and reasonably foreseeable future development during normal, dry and multiple dry years? Initial Study Form Page 13 of 15 FORM "J" 75D-211 c) Result in a determination by the wastewater treatment provider which serves or may serve the project that it has adequate capacity to serve the project's projected demand in addition to the provider's existing commitments? d) Generate solid waste in excess of State or local standards, or in excess of the capacity of local infrastructure, or otherwise impair the attainment of solid waste reduction goals? e) Comply with federal, state, and local management and reduction statutes and regulations related to solid waste? XIX. WILDFIRE — If located in or near state responsibility areas or lands classified as very high fire hazard severity zones, would the project: a) Substantially impair an adopted emergency response plan or emergency evacuation plan? b) Due to slope, prevailing winds, and other factors, exacerbate wildfire risks, and thereby expose project occupants to, pollutant concentrations from a wildfire or the uncontrolled spread of a wildfire? c) Require the installation or maintenance of associated infrastructure (such as roads, fuel breaks, emergency water sources, power lines or other utilities) that may exacerbate fire risk or that may result in temporary or ongoing impacts to the environment? d) Expose people or structures to significant risks, including downslope or downstream flooding or landslides, as a result of runoff, post -fire slope instability, or drainage changes? Less Than Significant Potentially With Less Than Significant Mitigation Significant No Impact Incorporated Impact Impact ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ Initial Study Foam Page 14 of 15 FORM' T' 75D-212 XX. MANDATORY FINDINGS OF SIGNIFICANCE -- a) Does the project have the potential to substantially degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self-sustaining levels, threaten to eliminate a plant or animal community, substantially reduce the number or restrict the range of a rare or endangered plant or animal or eliminate important examples of the major periods of California history or prehistory? b) Does the project have impacts that are individually limited, but cumulatively considerable? ("Cumulatively considerable" means that the incremental effects of a project are considerable when viewed in connection with the effects of past projects, the effects of other current project, and the effects of probable future projects.) c) Does the project have environmental effects which will cause substantial adverse effects on human beings, either directly or indirectly? Less Than Significant Potentially With Less Than Significant Mitigation Significant No Impact Incorporated Impact Impact ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ Note: Authority cited: Public Resources Code sections 21083, 21083.05, 21083.09. Reference: Gov. Code section 65088.4; Public Resources Code sections 21073, 21074, 21080(c), 21080.1, 21080.3, 21080.3.1, 21080.3.2, 21082.3, 21083, 21083.3, 21083.5, 21084.2, 21084.3, 21093, 21094, 21095 and 21151; Sundstrom v. County of Mendocino (1988) 202 Cal.App.3d 296; Leonoffv. Monterey Board of Supervisors (1990) 222 Cal.App.3d 1337; Eureka Cilizensfor Responsible Govt. v. City of Eureka (2007) 147 Cal.AppAth 357; Protect the Historic Amador Waterways v. Amador Water Agency (2004) 116 Cal.AppAth 1099, 1109; San Franciscans Upholding the Downtown Plan v. City and County of San Francisco (2002) 102 Cal.AppAth 656. Initial Study Form Page 15 of 15 FORM "T' 75D-213 NOTICE OF AVAILABILITY OF DRAFT EIR Project Title: Project Location— Specific; Identify street address and cross streets or attach a map showing project site (preferably a USGS 15' or 7 1/2' topographical map identified by quadrangle name): Project Location — City: Project Location — County: Description of Nature, Purpose, and Beneficiaries of Project: Project Site — Specify if project site is included on any list of hazardous waste facilities: Place and time of scheduled meetings: Lead Agency: Division Date when project noticed to public: Address where copy of the EIR is available and how it can be obtained in an electronic format: Review Period: [FIELL- IN START DATE] to [FILL-IN END DATE] Contact Person: Contact Person's Telephone (Area Code/Extension: Notice of Availability of Draft EIR FORM "K" 75D-214 California Department of Fish and Wildlife No Effect Determination Request Form To: DEPARTMENT OF FISH AND WILDLIFE South Coast Regional Office 3883 Ruffin Road San Diego, CA 92123 Information: (858) 4674201 FAX: (858) 467-4299 Email: AskR5@wildlife.ca.gov http://www.wildlife.ca.gov Environmental Review and Permitting 1416 Ninth Street Sacramento, California 95814 Information: (916) 6534875 Date Submitted: CEQA Lead Agency: Lead Agency Contact Phone Number: Lead Agency Address: SCH Number or County Filing Number and local agency project/case number: CEQA Document Type (the type of document prepared for your project by the CEQA Lead Agency): Applicant Name and Contact Phone Number (if applicable): Applicant Address (if applicable): Project Title: Project Location (include the street address, lat/long, range/township/section, or other description that clearly indicates the location of the project site. Include an aerial or topographic map of the project site): Project Description (include details such as new construction [with square footage], demolition of existing buildings, adaptive reuse of existing buildings, zoning amendments, general plan amendments, conditional use for sale of alcoholic beverages, etc.) Use additional sheets if necessary: REQUEST FOR FEE EXEMPTION\LA/Orange/San 1 FORM "L" Diego/Santa Barbara and Ventura counties (Region 5) 75D-215 Justification for No Effect Determination (explain how the proposed project is consistent with Title 14 Section 753.5(d) CCR): Facts Supporting Fee Exemption: 1. An Initial Study has been prepared by the Lead Agency to evaluate the project's effects on fish and wildlife resources, if any. 2. The Lead Agency hereby finds that there is substantial evidence that the project will have no effect on fish or wildlife. 3. The project will have NO EFFECT on the following resources: (A) Riparian land, rivers, streams, watercourses and wetlands; (B) Native and non-native plant life and the soil required to sustain habitat for fish and wildlife; (C) Rare and unique plant life and ecological communities dependant on plant life; (D) Listed threatened and endangered plants and animals and the habitat in which they are believed to reside; (E) All species listed as protected or identified for special management in the Fish and Game Code, the Public Resources Code, the Water Code or regulations adopted thereunder; (F) All marine and terrestrial species subject to the jurisdiction of the Department of Fish and Game and the ecological communities in which they reside; and (G) All air and water resources, the degradation of which will individually or cumulatively result in a loss of biological diversity among the plants and animals residing in that air and water. DECLARATION: Based on the Lead Agency's evaluation of potential adverse effects on fish and wildlife resources, the Lead Agency believes the project will have no effect on fish or wildlife resources, as defined in Section 711.2 of the Fish and Game Code. Signature - Lead Agency Representative Title: Lead Agency: Date: REQUEST FOR FEE EXEMPTION\LA/Orange/San 2 FORM "L" Diego/Santa Barbara and Ventura counties (Region 5) 75D-216 NOTICE OF RECIRCULATION To whom it may concern: You are receiving this notice because you commented on the Draft EIR for the following Project: Project Name: Project Description: Project Location — Identify street address and cross streets or attach a map showing project site (preferably a USGS 15' or 7 1/2' topographical map identified by quadrangle name): The Draft EIR prepared for this project has been revised. ❑ The entire Draft EIR is being recirculated. Your prior comments remain part of the administrative record, but they are no longer applicable to the Draft EIR that is under consideration. The Final EIR will not provide a response to your prior comments. Should you wish to comment on the revised Draft EIR, you will need to submit new comments. ❑ Only the following chapters or portions of the Draft EIR have been revised, and only those parts of the revised Draft EIR are being recirculated: ❑ Your comments should be limited to those parts of the revised Draft EIR that are being recirculated. ❑ Your comments need not be limited to those parts of the revised Draft EIR that are being recirculated. Review Period on Recirculated Draft EIR: From [FILL-IN START DATE] to [FILL-IN END DATE] All comments on the Recirculated Draft EIR should be addressed to the following individual and must be received no later than [FILL-IN END DATE]. Should you have any questions about this notice, please contact: Staff: Title: Telephone Number: E-Mail: Date Received for Filing: (Clerk Stamp Here) Staff Title Notice of Recirculation FORM "M" 75D-217 THIS IS A SAMPLE FORM AND SHOULD BE MODIFIED TO MEET THE NEEDS OF THE PARTICULAR PROJECT/CIRCUMSTANCE [Date] General Manager ABC Water District/Agency/Company 123 Main St. Anytown USA, 9xxxx Re: Water Supply Assessment for Dear M(r/s.) Project within the City of We have received an application from [project proponent] for the following project '("Project"): [list applications and briefly describe project] We have consulted with each other and have mutually agreed that your [District/Agency/Company] is a public water system that may provide water service to the Project. We have also mutually agreed that the Project is subject to the water supply assessment requirements of Water Code sections 10910 - 10912. Pursuant to Water Code section 10910, [City/County] requests [District/Agency/Company] to submit a water supply assessment for the Project on or before which is within 90 days of the date of this request. We concurrently request the [District/Agency/Company] to state whether the projected water demand associated with the Project was included as part of the [City's or County's] most recently adopted Urban Water Management Plan. Please contact me to confirm receipt of this request. Thank you for your cooperation in this matter. If you have any questions about this request, please contact me at your earliest convenience. [Name] [Title] REQUEST FOR WATER SUPPLY ASSESSMENT FORM "N" 75D-218 THIS IS A SAMPLE FORM AND SHOULD BE MODIFIED AS NECESSARY TO MEET THE NEEDS OF THE PARTICULAR PROJECT/CIRCUMSTANCE [Date] General Manager ABC Water District/Agency/Company 123 Main St. Anytown USA, 9xxxx Re: Water Supply Verification for Project within the City/County of Dear M(r/s.) [Subdivision proponent] has submitted to the [City or County] an application for tentative map (No. ## - ##) for the following subdivision ("Subdivision"): [insert project description] [City/County staff has determined that the application is complete. Pursuant to Government Code section 66455.3, we are enclosing a copy of the application.] [We have consulted with each other and have mutually agreed that your [District/Agency/Company] is a public water system that may provide water service to the Subdivision. We have also mutually agreed that the Subdivision is subject to the water supply verification requirements of the Subdivision Map Act.] Pursuant to Government Code section 66473.7(b)(1), [City or County] requests [District/Agency/Company] to submit a water supply verification for the Subdivision on or before , , which is within 90 days of the date of this request. Please contact me to confirm receipt of this request. Thank you for your cooperation in this matter. If you have any questions about this request, please contact me at your earliest convenience. [Name] [Title] WATER SUPPLY VERIFICATION REQUEST FORM "O" 75D-219 SHORTENED REVIEW REQUEST FORM (To be filled out and signed by the Lead Agency and submitted with the DEIR or Negative Declaration to SCH) TO: State Clearinghouse FROM: Lead Agency: P.O. Box 3044 Address: Sacramento, CA 95812-3044 State Clearinghouse Phone: Number: Contact: Project Title: Specific Project Location — Identify street address and cross street or attach a map showing project site (preferably a USGS 15' or 7 %:' topographical map identified by quadrangle name): General Project Location (City and/or County): Type of Environmental Document: ❑ Environmental Impact Report (EIR). The Lead Agency issued a Notice of Preparation on and received comments from applicable State agencies. ❑ Negative Declaration (ND) or Mitigated Negative Declaration (MND). The Lead Agency consulted with applicable State agencies on Brief Project Description: Explain "exceptional circumstances" (State CEQA Guidelines Section 15205(d)) for requesting a shortened review. Identify which of the following five (5) criteria in State CEQA Guidelines Appendix K are met for this project. 1. ❑ The Lead Agency is operating under an extension of the one-year period for completion of an EIR and would not otherwise be able to complete the EIR within the extended period. 2. ❑ The public project applicant is under severe time constraints with regard to obtaining financing or exercising options which cannot be met without shortening the review period. 3. ❑ The document is a supplement to a draft EIR or proposed negative declaration or mitigated negative declaration previously submitted to the State Clearinghouse. 4. ❑ The health and safety of the community would be at risk unless the project is approved expeditiously. 5. ❑ The document is a revised draft EIR, or proposed negative declaration or mitigated negative declaration, where changes in the document are primarily the result of comments from agencies and the public. Request for Shortened Review 1 FORM "P" 75D-220 Explain how the above criteria applies to the project. In compliance with the State and Local CEQA Guidelines, the Lead Agency has contacted and obtained prior approval for a shortened review from the applicable State responsible and trustee agencies. List responsible and trustee state agencies with contact person, phone number and date of consent for the shortened review, as well as any agencies that have commented on the project (attach additional pages, if necessary): As designated representative for the Lead Agency, I verify, in the Lead Agency's behalf, that there is no "statewide, regional, or areawide significance" to this project. Length of review being requested: days Date: Print Name: Date Received for Filing: Signature of Designated Lead Agency Representative Title Request for Shortened Review 2 FORM "P" 75D-221 SUMMARY FORM FOR ELECTRONIC DOCUMENT SUBMITTAL Lead agencies may include 15 hardcopies of this document when submitting electronic copies of environmental documents to the State Clearinghouse (SCH). The SCH also accepts other summaries, such as EIR Executive Summaries prepared pursuant to State CEQA Guidelines Section 15123. Please include one copy of the Notice of Completion Form (NOC) with your submission and attach the summary to each electronic copy of the document. State Clearinghouse Number: Lead Project Title: Project Location (City and County): Contact: Provide a Project Description (Proposed actions, location, and/or consequences). Identify the project's significant or potentially significant effects and briefly describe any proposed mitigation measures that would reduce or avoid that effect. If applicable, describe any of the project's areas of controversy known to the Lead Agency, including issues raised by agencies and the public. Provide a list of the responsible or trustee agencies for the project. Electronic Submittal 75D-222 FORM "Q" Form R: Performance Standards for Infill Projects Eligible for Streamlined Review I. Introduction Section 15183.3 provides a streamlined review process for infill projects that satisfy specified performance standards. This appendix contains those performance standards. The lead agency's determination that the project satisfies the performance standards shall be supported with substantial evidence, which should be documented on the Infill Checklist in Appendix S. Section II defines terms used in this Appendix. Performance standards that apply to all project types are set forth in Section III. Section IV contains performance standards that apply to particular project types (i.e., residential, commercial/retail, office building, transit stations, and schools). II. Definitions The following definitions apply to the terms used in this Appendix. "High -quality transit corridor" means an existing corridor with fixed route bus service with service intervals no longer than 15 minutes during peak commute hours. For the purposes of this Appendix, an "existing stop along a high -quality transit corridor" may include a planned and funded stop that is included in an adopted regional transportation improvement program. Unless more specifically defined by an air district, city or county, "high -volume roadway" means freeways, highways, urban roads with 100,000 vehicles per day, or rural roads with 50,000 vehicles per day. "Low vehicle travel area" means a traffic analysis zone that exhibits a below average existing level of travel as determined using a regional travel demand model. For residential projects, travel refers to either home -based or household vehicle miles traveled per capita. For commercial and retail projects, travel refers to non -work attraction trip length; however, where such data are not available, commercial projects reference either home -based or household vehicle miles traveled per capita. For office projects, travel refers to commute attraction vehicle miles traveled per employee; however, where such data are not available, office projects referencereither home - based or household vehicle miles traveled per capita. "Major Transit Stop" means a site containing an existing rail transit station, a ferry terniinal served by either a bus or rail transit service, or the intersection of two or more major bus routes with frequencies of service intervals of 15 minutes or less during the morning and afternoon peak commute periods. For the purposes of this Appendix, an "existing major transit stop" may include a planned and funded stop that is included in an adopted regional transportation improvement program. "Office building" generally refers to centers for governmental or professional services; however, the lead agency shall have discretion in determining whether a project is "commercial" or "office building" for the purposes of this Appendix based on local zoning codes. 4- PERFORMANCE STANDARDS FOR INFILL PROJECT Ili TUVI 75D-223 "Significant sources of air pollution" include airports, marine ports, rail yards and distribution centers that receive more than 100 heavy-duty truck visits per day, as well as stationary sources that are designated major by the Clean Air Act. A "Traffic Analysis Zone" is an analytical unit used by a travel demand model to estimate vehicle travel within a region. III. Performance Standards Related to Project Design To be eligible for streamlining pursuant to Section 15183.3, a project must implement all of the following: Renewable Energy. All non-residential projects shall include on -site renewable power generation, such as solar photovoltaic, solar thermal and wind power generation, or clean backup power supplies, where feasible. Residential projects are also encouraged to include such on -site renewable power generation. Soil and Water Remediation. If the project site is included on any list compiled pursuant to Section 65962.5 of the Government Code, the project shall document how it has remediated the site, if remediation is completed. Alternatively, the project shall implement the recommendations provided in a preliminary endangerment assessment or comparable document that identifies remediation appropriate for the site. Residential Units Near High -Volume Roadways and Stationary Sources. If a project includes residential units located within 500 feet, or other distance determined to be appropriate by the local agency or air district based on local conditions, of a high volume roadway or other significant sources of air pollution, the project shall comply with any policies and standards identified in the local general plan, specific plan, zoning code or community risk reduction plan for the protection of public health from such sources of air pollution. If the local government has not adopted such plans or policies, the project shall include measures, such as enhanced air filtration and project design, that the lead agency finds, based on substantial evidence, will promote the protection of public health from sources of air pollution. Those measures may include, among others, the recommendations of the California Air Resources Board, air districts, and the California Air Pollution Control Officers Association. IV. Additional Performance Standards by Project Type In addition to the project features described above in Section III, specific eligibility requirements are provided below by project type. Several of the performance standards below refer to "low vehicle travel areas." Such areas can be illustrated on maps based on data developed by the regional Metropolitan Planning Organization (MPO) using its regional travel demand model. Several of the performance standards below refer to distance to transit. Distance should be calculated so that at least 75 percent of the surface area of the project site is within the specified distance. -2- PERFORMANCE STANDARDS FOR EST= PROJECT FORM R 75D-224 A . Residential To be eligible for streamlining pursuant to Section 15183.3, a project must satisfy one of the following: Projects achieving below average regional per capita vehicle miles traveled (VMT). A residential project is eligible if it is located in a "low vehicle travel area" within the region. Projects located within 1/2% mile of an Existing Major Transit Stop or High Quality Transit Corridor. A residential project is eligible if it is located within 1/2 mile of an existing major transit stop or an existing stop along a high quality transit corridor. Low -Income Housing. A residential or mixed -use project consisting of 300 or fewer residential units all of which are affordable to low income households is eligible if the developer of the development project provides sufficient legal commitments to the lead agency to ensure the continued availability and use of the housing units for lower income households, as defined in Section 50079.5 of the Health and Safety Code, for a period of at least 30 years, at monthly housing costs, as determined pursuant to Section 50053 of the Health and Safety Code. B . Commercial/Retail To be eligible for streamlining pursuant to Section 15183.3, a project must satisfy one of the following: Regional Location. A commercial project with no single -building floor -plate greater than 50,000 square feet is eligible if it locates in a "low vehicle travel area." Proximity to Households. A project with no single -building floor -plate greater than 50,000 square feet located within one-half mile of 1800 households is eligible. C. Office Building To be eligible for streamlining pursuant to Section 15183.3, a project must satisfy one of the following: Regional Location. Office buildings, both commercial and public, are eligible if they locate in a low vehicle travel area. Proximity to a Major Transit Stop. Office buildings, both commercial and public, within 1/2 mile of an existing major transit stop, or 1/4 mile of an existing stop along a high quality transit corridor, are eligible. D. Transit Transit stations, as defined in Section 15183.3(e)(1), are eligible. -3- PERFORMANCE STANDARDS FOR INFILL PROJECT f 8175i7 75D-225 E. Schools Elementary schools within one mile of fifty percent of the projected student population are eligible. Middle schools and high schools within two miles of fifty percent of the projected student population are eligible. Alternatively, any school within 1/2% mile of an existing major transit stop or an existing stop along a high quality transit corridor is eligible. Additionally, in order to be eligible, all schools shall provide parking and storage for bicycles and scooters and shall comply with the requirements in Sections 17213, 17213.1 and 17213.2 of the California Education Code. F. Small Walkable Community Projects Small walkable community projects, as defined in Section 15183.3, subdivision (e)(6), that implement the project features described in Section III above are eligible. G. Mixed -Use Projects Where a project includes some combination of residential, commercial and retail, office building, transit station, and/or schools, the performance standards in this Section that apply to the predominant use shall govern the entire project. Authority: Public Resources Code Sections 21083, 21094.5.5 Reference: Public Resources Code Sections 21094.5 and 21094.5.5 -4- PERFORMANCE STANDARDS FOR INFILL PROJECT FORM R 75D-226 INFILL ENVIRONMENTAL CHECKLIST FORM NOTE: This sample form is intended to assist lead agencies in assessing infill projects according to the procedures provided in Section 21094.5 of the Public Resources Code. Lead agencies may customize this form as appropriate, provided that the contents satisfies the requirements in Section 15183.3 of the State CEQA Guidelines. 1. Project Title: 2. Lead Agency Name and Address: 3. Contact Person and Phone Number: 4. Project Location: 5. Project Sponsor's Name and Address: 6. General Plan Designation: 7. Zoning: 8. Prior Environmental Document(s) Analyzing the Effects of the Infill Project: 9. Location of Prior Environmental Document(s) Analyzing the Effects of the Infill Project (including State Clearinghouse Number, if assigned): 10. Description of Project: (Describe the whole action involved, including but not limited to later phases of the project, and any secondary, support, or off -site features necessary for its implementation. Attach additional sheet(s) if necessary.) 11. Surrounding Land Uses and Setting: (Briefly describe the project's surroundings, including any prior uses of the project site, or, if vacant, describe the urban uses that exist on at least 75% of the project's perimeter.) 12. Other public agencies whose approval is required (e.g., permits, financing approval, or participation agreement): 13. Have California Native American tribes traditionally and culturally affiliated with the project area requested consultation pursuant to Public Resources Code section 21080.3.1? If so, is there a plan for consultation that includes, for example, the determination of significance of impacts to tribal cultural resources, procedures regarding confidentiality, etc.? Note: Conducting consultation early in the CEQA process allows tribal governments, lead agencies, and project Infill Environmental Ch cldist Fmm Pagel of 20 FORM "S" 75D-227 proponents to discuss the level of environmental review, identify and address potential adverse impacts to tribal cultural resources, and reduce the potential for delay and conflict in the environmental review process. (See Public Resources Code section 21080.3.2.) Information may also be available from the California Native American Heritage Commission's Sacred Lands File per Public Resources Code section 5097.96 and the California Historical Resources Information System administered by the California Office of Historic Preservation. Please also note that Public Resources Code section 21082.3(c) contains provisions specific to confidentiality SATISFACTION OF FORM R PERFORMANCE STANDARDS Provide the information demonstrating that the infill project satisfies the performance standards in Form R below. For mixed -use projects, the predominant use will determine which performance standards apply to the entire project. 1. Does the non residential infill project include a renewable energy feature? If so, describe below. If not, explain below why it is not feasible to do so. 2. If the project site is included on any list compiled pursuant to Section 65962.5 of the Government Code, either provide documentation of remediation or describe the recommendations provided in a preliminary endangerment assessment or comparable document that will be implemented as part of the project. 3. If the infill project includes residential units located within 500 feet, or such distance that the local agency or local air district has determined is appropriate based on local conditions, a high volume roadway or other significant source of air pollution, as defined in Form R, describe the measures that the project will implement to protect public health. Such measures may include policies and standards identified in the local general plan, specific plans, zoning code or community risk reduction plan, or measures recommended in a health risk assessment, to promote the protection of public health. Identify the policies or standards, or refer to the site specific analysis, below. (Attach additional sheets if necessary.) 4. For residential projects, the project satisfies which of the following? ❑ Located within a low vehicle travel area, as defined in Form S. (Attach VMT map.) ❑ Located within 1/2 mile of an existing major transit stop or an existing stop along a high quality transit corridor. (Attach map illustrating proximity to transit.) ❑ Consists of 300 or fewer units that are each affordable to low income households. (Attach evidence of legal commitment to ensure the continued availability and use of the housing units for lower income households, as defined in Section 50079.5 of the Health and Safety Code, for a period of at least 30 years, at monthly housing costs, as determined pursuant to Section 50053 of the Health and Safety Code.) 5. For commercial projects with a single building floor -plate below 50,000 square feet, the project satisfies which of the following? ❑ Located within a low vehicle travel area, as defined in Form R. (Attach VMT map.) ❑ The project is within one-half mile of 1800 dwelling units. (Attach map illustrating proximity to households.) 6. For office building projects, the project satisfies which of the following? ❑ Located within a low vehicle travel area, as defined in Form R. (Attach VMT map.) Infill Environmental Checklist Form Page 2 of 20 FORM "S" 75D-228 ❑ Located within 1/2 mile of an existing major transit stop or within 1/4 of a stop along a high quality transit corridor. (Attach map illustrating proximity to transit.) 7. For school projects, the project does all of the following: ❑ The project complies with the requirements of Sections 17213, 17213.1 and 17213.2 of the California Education Code. ❑ The project is an elementary school and is within one mile of 50% of the student population, or is a middle school or high school and is within two miles of 50% of the student population. Alternatively, the school is within 1/2 mile of an existing major transit stop or an existing stop along a high quality transit corridor. (Attach map and methodology.) ❑ The project provides parking and storage for bicycles and scooters. 8. For small walkable community projects, the project must be a residential project that has a density of at least eight units to the acre or a commercial project with a floor area ratio of at least 0.5, or both. ENVIRONMENTAL FACTORS POTENTIALLY AFFECTED: The infill project could potentially result in one or more of the following environmental effects ❑ Aesthetics ❑ Agriculture and Forestry Resources ❑ Air Quality ❑ Biological Resources ❑ Cultural Resources ❑ Geology / Soils ❑ Greenhouse Gas Emissions ❑ Hazards & Hazardous Materials ❑ Hydrology / Water Quality ❑ Land Use / Planning ❑ Mineral Resources ❑ Noise ❑ Population / Housing ❑ Public Services ❑ Recreation ❑ Transportation ❑ Utilities / Service Systems ❑ Mandatory Findings of Significance ❑ Energy ❑ Wildfire DETERMINATION (To be completed by the Lead Agency): On the basis of this initial evaluation: ❑ I find that the proposed infill project WOULD NOT have any significant effect on the environment that either have not already been analyzed in a prior EIR or that are more significant than previously analyzed, or that uniformly applicable development policies would not substantially mitigate. Pursuant to Public Resources Code Section 21094.5, CEQA does not apply to such effects. ANotice of Determination (Section 15094) will be filed. ❑ I find that the proposed infill project will have effects that either have not been analyzed in a prior EIR, or are more significant than described in the prior EIF, and that no uniformity applicable development policies would substantially mitigate such effects. With respect to those effects that are subject to CEQA, I find that such effects WOULD NOT be significant and a NEGATIVE DECLARATION, or if the project is a Transit Priority Project a SUSTAINABLE COMMUNITIES ENVIRONMENTAL ASSESSMENT, will be prepared. ❑ I find that the proposed infill project will have effects that either have not been analyzed in a prior EIR, or are more significant than described in the prior EIR, and that no uniformly applicable development policies would substantially mitigate such effects. I find that although those effects could be significant, there will not be a significant effect in this case because revisions in the infill project have been made by or agreed to by the project proponent. A MITIGATED NEGATIVE DECLARATION, or if the project is a Transit Priority Project a SUSTAINABLE COMMUNITIES ENVIRONMENTAL ASSESSMENT, will be prepared. ❑ I find that the proposed infill project would have effects that either have not been analyzed in a prior EIR, or are more significant than described in the prior EIR, and that no uniformly applicable development policies would substantially mitigate such effects. I find that those effects WOULD be significant, and an infill ENVIRONMENTAL IMPACT REPORT is required to analyze those effects that are subject to CEQA. infill Environmental Checklist Fotm Page 3 of 20 FORM "S" 75D-229 Signature Printed Name EVALUATION OF ENVIRONMENTAL IMPACTS: Date For 1) A brief explanation is required for all answers except "No Impact" answers that are adequately supported by the information sources a Lead Agency cites in the parentheses following each question. A "No Impact" answer is adequately supported if the referenced information sources show that the impact simply does not apply to projects like the one involved (e.g. the project falls outside a fault rupture zone). A "No Impact" answer should be explained where it is based on project -specific factors as well as general standards (e.g. the project will not expose sensitive receptors to pollutants, based on a project -specific screening analysis). 2) All answers must take account of the whole action involved, including off -site as well as on -site, cumulative as well as project -level, indirect as well as direct, and construction as well as operational impacts. 3) For the purposes of this checklist, "prior EIR" means the environmental impact report certified for a planning level decision, as supplemented by any subsequent or supplemental environmental impact reports, negative declarations, or addenda to those documents. "Planning level decision" means the enactment or amendment of a general plan, community plan, specific plan, or zoning code. (Section 15183.3(e).) 4) Once the Lead Agency has determined that a particular physical impact may occur as a result of an infill project, then the checklist answers must indicate whether the impact has already been analyzed in a prior EIR. If the effect of the infill project is not more significant than what has already been analyzed, that effect of the infill project is not subject to CEQA. The brief explanation accompanying this determination should include page and section references to the portions of the prior EIR containing this analysis of that effect. The brief explanation shall also indicate whether the prior EIR included any mitigation measures to substantially lessen that effect and whether those measures have been incorporated into the infill project. 5) If the infill project would cause a significant adverse effect that either is specific to the project or project site and was not analyzed in a prior EIR, or is more significant than what was analyzed in a prior EIR, the Lead Agency must determine whether uniformly applicable development policies or standards that have been adopted by the Lead Agency, or city or county, would substantially mitigate that effect. If so, the checklist shall explain how the infill project's implementation of the uniformly applicable development policies will substantially mitigate that effect. That effect of the infill project is not subject to CEQA if the lead agency makes a finding, based upon substantial evidence, that the development policies or standards will substantially mitigate that effect. 6) If all effects of an infill project were either analyzed in a prior EIR or are substantially mitigated by uniformly applicable development policies or standards, CEQA does not apply to the project, and the Lead Agency shall file a Notice of Determination. 7) Effects of an infill project that either have not been analyzed in a prior EIR, or that uniformly applicable development policies or standards do not substantially mitigate, are subject to CEQA. With respect to those effects of the infill project that are subject to CEQA, the checklist shall indicate whether those effects are significant, less than significant with mitigation, or less than significant. If there are one or more " Significant Impact" entries when the determination is made, an infill EIR is required. The infill EIR should be limited to analysis of those effects determined to be significant. (Sections 15128,15183.3(d).) infill Environmental Checklist Form Page 4 of 20 FORM "S" 75D-230 8) "Less Than Significant With Mitigation Incorporated" applies where the incorporation of mitigation measures will reduce an effect of an infill project that is subject to CEQA from " Significant Impact" to a "Less Than Significant Impact." The Lead Agency must describe the mitigation measures, and briefly explain how those measures reduce the effect to a less than significant level. If the effects of an infill project that are subject to CEQA are less than significant with mitigation incorporated, the Lead Agency may prepare a Mitigated Negative Declaration. If all of the effects of the infill project that are subject to CEQA are less than significant, the lead agency may prepare a Negative Declaration. 9) This is only a suggested form, and lead agencies are free to use different formats; however, lead agencies should normally address the questions from this checklist that are relevant to an infill project's environmental effects in whatever format is selected. 10) The explanation of each issue should identify: a) the significance criteria or threshold, if any, used to evaluate each question; and b) the mitigation measure identified, if any, to reduce the impact to less than significance. Issues: Substantially Less Than Mitigated by Significant Uniformly With Less Than Analzed Applicable Significant Mitigation Significant No in the Development Impact Incorporated tImpact Impact Prior EIR Policies AESTHETICS. Except as provided in Public Resources Code section 21099, would the project: a) Have a substantial adverse El ❑ ❑ ❑ ❑ ❑ effect on a scenic vista? b) Substantially damage scenic ❑ 0 ❑ resources, including, but not limited to, trees, rock outcroppings, and historic buildings within a state scenic highway? c) In non -urbanized areas, ❑ 11 El ❑ ❑ El substantially degrade the existing visual character or quality of public views of the site and its surroundings? (Public views are those that are experienced from publicly accessible vantage point). If the project is in an urbanized area, would the project conflict with applicable zoning and other regulations governing scenic quality?) Infill Envim mental Checklist Fmm Page 5 of 20 FORM "S" 75D-231 Substantially Less Than Mitigated by Significant Uniformly With Less Than Analzed Applicable Significant Mitigation Significan No in the Development Impact Incorporated t Impact Impact Prior EIR Policies d) Create a new source of ❑ ❑ ❑ ❑ substantial light or glare which would adversely affect day or nighttime views in the area? II. AGRICULTURE AND FOREST RESOURCES -- In determining whether impacts to agricultural resources are significant environmental effects, lead agencies may refer to the California Agricultural Land Evaluation and Site Assessment Model (1997) prepared by the California Dept. of Conservation as an optional model to use in assessing impacts on agriculture and farmland. In determining whether impacts to forest resources, including timberland, are significant environmental effects, lead agencies may refer to information compiled by the California Department of Forestry and Fire Protection regarding the state's inventory of forest land, including the Forest and Range Assessment Project and the Forest Legacy Assessment project; and forest carbon measurement methodology provided in Forest protocols adopted by the California Air Resources Board. -- Would the project: a) Convert Prime Farmland, El ❑ ❑ El 11 Unique Farmland, or Farmland of Statewide Importance (Farmland), as shown on the maps prepared pursuant to the Farmland Mapping and Monitoring Program of the California Resources Agency, to non- agricultural use? b) Conflict with existing zoning 11❑ ❑ ❑ for agricultural use, or a Williamson Act contract? Infill Environmental Checklist Fmm Page 6 of 20 FORM "S" 75D-232 Substantially Less Than Mitigated by Significant Uniformly With Less Than Analzed Applicable Significant Mitigation Significan No in the Development Impact Incorporated t Impact Impact Prior EIR Policies c) Conflict with existing zoning ❑ ❑ for, or cause rezoning of, forest land (as defined in Public Resources Code section 12220(g)), timberland (as defined by Public Resources Code section 4526), or timberland zoned Timberland Production (as defined by Government Code section 51104(g))? d) Result in the loss of forest EJ❑ 0 ❑ ❑ 11 land or conversion of forest land to non -forest use? e) Involve other changes in the ❑ El ❑ ❑ existing environment which, due to their location or nature, could result in conversion of Farmland, to non-agricultural use or conversion of forest land to non -forest use? III. AIR QUALITY — Where available, the significance criteria established by the applicable air quality management district or air pollution control district may be relied upon to make the following determinations. Would the project: a) Conflict with or obstruct El ❑ El ❑ El implementation of the applicable air quality plan? b) Result in a cumulatively ❑ ❑ ❑ ❑ ❑ considerable net increase of any criteria pollutant for which the project region is non -attainment under an applicable federal or state ambient air quality standard? c) Expose sensitive receptors to El❑ ❑ ❑ 11 ❑ substantial pollutant concentrations? d) Result in other emissions ❑ 11 ❑ ❑ (such as those leading to odors adversely affecting a substantial number of people? Infill Environmental Checklist Fmm Page 7 of 20 FORM "S" 75D-233 IV. BIOLOGICAL RESOURCES -- Would the project: a) Have a substantial adverse effect, either directly or through habitat modifications, on any species identified as a candidate, sensitive, or special status species in local or regional plans, policies, or regulations, or by the California Department of Fish and Game or U.S. Fish and Wildlife Service? b) Have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or regional plans, policies, regulations or by the California Department of Fish and Game or U.S. Fish and Wildlife Service? c) Have a substantial adverse effect on state or federally protected wetlands (including, but not limited to, marsh, vernal pool, coastal, etc.) through direct removal, filling, hydrological interruption, or other means? d) Interfere substantially with the movement of any native resident or migratory fish or wildlife species or with established native resident or migratory wildlife corridors, or impede the use of native wildlife nursery sites? e) Conflict with any local policies or ordinances protecting biological resources, such as a tree preservation policy or ordinance? Less Than Significant With Less Than Significant Mitigation Significan No Impact Incorporated t Impact Impact Substantially Mitigated by Uniformly Analzed Applicable in the Development Prior EIR Policies ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ Infill Environmental Checklist Fmm Page 8 of 20 FORM "S" 75D-234 Substantially Less Than Mitigated by Significant Uniformly With Less Than Analzed Applicable Significant Mitigation Significan No in the Development Impact Incorporated t Impact Impact Prior EIR Policies i) Conflict with the provisions of an adopted Habitat Conservation Plan, Natural Community Conservation Plan, or other approved local, regional, or state habitat conservation plan? V. CULTURAL RESOURCES -- Would the project: a) Cause a substantial adverse El ❑ ❑ El ❑ ❑ change in the significance of a historical resource pursuant to § 15064.5? b) Cause a substantial adverse ❑ ❑ ❑ ❑ change in the significance of an archaeological resource pursuant to § 15064.5? c) Disturb any human remains, ❑ ❑ ❑ ❑ including those interred outside of dedicated cemeteries? VI. ENERGY. Would the project: a) Result in potentially ❑ ❑ ❑ significant environmental impact due to wasteful, inefficient, or unnecessary consumption of energy resources, during project construction or operation? b) Conflict with or obstruct a ❑ ❑ El ❑ O ❑ state or local plan for renewable energy or energy efficiency? VI[. GEOLOGY AND SOILS -- Would the project: a) Directly or indirectly cause El potential substantial adverse effects, including the risk of loss, injury or death involving: Infin Enviro mental Checklist Fonn Page 9 of 20 FORM "S" 75D-235 Substantially Less Than Mitigated by Significant Uniformly With Less Than Analzed Applicable Significant Mitigation Significan No in the Development Impact Incorporated t Impact Impact Prior EIR Policies i) Rupture of a known ❑ ❑ earthquake fault, as delineated on the most recent Alquist-Priolo Earthquake Fault Zoning Map issued by the State Geologist for the area or based on other substantial evidence of a known fault? Refer to Division of Mines and Geology Special Publication 42. ii) Strong seismic ground ❑ ❑ El ❑ ❑ shaking? iii) Seismic -related ground ❑ ❑ 11 ❑ failure, including liquefaction? iv) Landslides? ❑ ❑ ❑ ❑ b) Result in substantial soil ❑ ❑ ❑ ❑ ❑ erosion or the loss of topsoil? c) Be located on a geologic unit ❑ 0 1:1 El or soil that is unstable, or that would become unstable as a result of the project, and potentially result in on- or off -site landslide, lateral spreading, subsidence, liquefaction or collapse? d) Be located on expansive soil, 0❑ ❑ ❑ ❑ El as defined in Table 18-1-B of the Uniform Building Code, creating substantial direct or indirect risks to life or property? e) Have soils incapable of El ❑ 11 ❑ ❑ ❑ adequately supporting the use of septic tanks or alternative waste water disposal systems where sewers are not available for the disposal of waste water? Infill Environmental Checklist Poem Page 10 of 20 FORM "S" 75D-236 Substantially Less Than Mitigated by Significant Uniformly With Less Than Analzed Applicable Significant Mitigation Significan No in the Development Impact Incorporated t Impact Impact Prior EIR Policies f) Directly or indirectly destroy ❑ ❑ ❑ a unique paleontological resource or site or unique geologic feature? VM. GREENHOUSE GAS EMISSIONS - Would the project: a) Generate greenhouse gas El El El El 11 emissions, either directly or indirectly, that may have a significant impact on the environment? b) Conflict with an applicable plan, policy or regulation adopted for the purpose of reducing the emission of greenhouse gases? IX. HAZARDS AND HAZARDOUS MATERIALS -- Would the project: a) Create a significant hazard to El El El El 13 11 the public or the environment through the routine transport, use, or disposal of hazardous materials? b) Create a significant hazard to the public or the environment through reasonably foreseeable upset and accident conditions involving the release of hazardous materials into the environment? c) Emit hazardous emissions or handle hazardous or acutely hazardous materials, substances, or waste within one -quarter mile of an existing or proposed school? hM Envimnmoual Checklist Fmm Page 11 of 20 FORM "S" 75D-237 d) Be located on a site which is included on a list of hazardous materials sites compiled pursuant to Government Code section 65962.5 and, as a result, would it create a significant hazard to the public or the environment? e) For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project result in a safety hazard or excessive noise for people residing or working in the project area? f) Impair implementation of or physically interfere with an adopted emergency response plan or emergency evacuation plan? g) Expose people or structures, either directly or indirectly, to a significant risk of loss, injury or death involving wildland fires? X. HYDROLOGY AND WATER QUALITY- Would the project: a) Violate any water quality standards or waste discharge requirements or otherwise substantially degrade surface or ground water quality? b) Substantially decrease groundwater supplies or interfere substantially with groundwater recharge such that the project may impede sustainable groundwater management of the basin? Less Than Significant With Less Than Significant Mitigation Significan No Impact Incorporated t Impact Impact ❑ ❑ ❑ ❑ Substantially Mitigated by Uniformly Analzed Applicable in the Development PriorEIR Policies ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ Infill Environmental Checklist Fo m Page 12 of 20 FORM "S" 75D-238 Substantially Less Than Mitigated by Significant Uniformly With Less Than Analzed Applicable Significant Mitigation Significan No in the Development Impact Incorporated t Impact Impact Prior EIR Policies c) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river or through the addition of impervious surfaces, in a manner which would: i) result in substantial ❑ ❑ ❑ 11 ❑ erosion or siltation on - or off -site; ii) substantially increase El ❑ 0 El ❑ ❑ the rate or amount of surface runoff in a manner which would result in flooding on - or offsite; iii) create or contribute ❑ ❑ ❑ ❑ El runoff water which would exceed the capacity of existing or planned stormwater drainage systems or provide substantial additional sources of polluted runoff; or iv) impede or redirect ❑ ❑ ❑ El ❑ ❑ flood flows? d) In flood hazard, tsunami, or ❑ ❑ ❑ 11 ❑ ❑ seiche zones, risk release of pollutants due to project inundation? e) Conflict with or obstruct ❑ ❑ ❑ 11 ❑ ❑ implementation of a water quality control plan or sustainable groundwater management plan? M. LAND USE AND PLANNING - Would the project: a) Physically divide an ❑ ❑ E3 ❑ 11 ❑ established community? Infill Environmental Checklist Foam Page 13 of 20 FORM "S" 75D-239 b) Cause a significant environmental impact due to a conflict with any land use plan, policy, or regulation adopted for the purpose of avoiding or mitigating an environmental effect? XII. MINERAL RESOURCES - Would the project: a) Result in the loss of availability of a known mineral resource that would be of value to the region and the residents of the state? b) Result in the loss of availability of a locally - important mineral resource recovery site delineated on a local general plan, specific plan or other land use plan? XIH. NOISE - Would the project result in: a) Generation of a substantial temporary or permanent increase in ambient noise levels in the vicinity of the project in excess of standards established in the local general plan or noise ordinance, or applicable standards of other agencies? b) Generation of excessive groundbome vibration or groundbome noise levels? c) For a project located within the vicinity of a private airstrip or an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project expose people residing or working in the project area to excessive noise levels? Less Than Significant With Less Than Significant Mitigation Significan No Impact Incorporated t Impact Impact ❑ ❑ ❑ ❑ Substantially Mitigated by Uniformly Analzed Applicable in the Development Prior EIR Policies ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ Infill Envimmnental Checklist Fo¢n Page 14 of 20 FORM "S" 75D-240 Substantially Less Than Mitigated by Significant Uniformly With Less Than Analzed Applicable Significant Mitigation Significant No in the Development Impact Incorporated t Impact Impact Prior EIR Policies XIV. POPULATION AND HOUSING - Would the project: a) Induce substantial unplanned ❑ ❑ ❑ ❑ ❑ ❑ population growth in an area, either directly (for example, by proposing new homes and businesses) or indirectly (for example, through extension of road or other infrastructure)? b) Displace substantial numbers ❑ ❑ ❑ ❑ ❑ ❑ of existing people or housing, necessitating the construction of replacement housing elsewhere? XV. PUBLIC SERVICES - Would the project: a) Result in substantial adverse ❑ ❑ ❑ ❑ ❑ ❑ physical impacts associated with the provision of new or physically altered governmental facilities, need for new or physically altered governmental facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times or other performance objectives for any of the public services: Fire protection? ❑ ❑ ❑ ❑ ❑ ❑ Police protection? ❑ ❑ ❑ ❑ ❑ ❑ Schools? ❑ ❑ ❑ ❑ ❑ ❑ Parks? ❑ ❑ ❑ ❑ ❑ ❑ Other public facilities? ❑ ❑ ❑ ❑ ❑ ❑ Infia Environmental Checklist Futm Page 15 of 20 FORM "S" 75D-241 XVI. RECREATION -- a) Would the project increase the use of existing neighborhood and regional parks or other recreational facilities such that substantial physical deterioration of the facility would occur or be accelerated? b) Does the project include recreational facilities or require the construction or expansion of recreational facilities which have an adverse physical effect on the environment? XVII. TRANSPORTATION --Would the project: a) Conflict with program plan, ordinance or policy addressing the circulation system, including transit, roadway, bicycle and pedestrian facilities? b) Conflict or be inconsistent with CEQA Guidelines section 15064.31 or will conflict with an applicable congestion management program, including, but not limited to, level of service standards and travel demand measures, or other standards established by the county congestion management agency for designated roads or highways? Less Than Significant With Less Than Significant Mitigation Significan No Impact Incorporated t Impact Impact u U 0 0 9 n a ❑� n 0 701 IN El Substantially Mitigated by Uniformly Analzed Applicable in the Development Prior EIR Policies n 11 u l CEQA Guidelines section 15064.3(c) provides that a lead agency"may elect to be governed by the provisions" of the section immediately; otherwise, the section's provisions apply July 1, 2020. Here, the District has not elected to be governed by Section 15064.3. Accordingly, an analysis of vehciles miles traveled (VMT) is not necessary to determine whether a proposed project will have a significant transportation impact. J u IN Infill Envnoamoual Checklist Pocm Page 16 of 20 FORM "S" 75D-242 Substantially Less Than Mitigated by Significant Uniformly With Less Than Analzed Applicable Significant Mitigation Significan No in the Development Impact Incorporated t Impact Impact Prior EIR Policies c) Substantially increase hazards ❑ ❑ El ❑ El due to a geometric design feature (e.g., sharp curves or dangerous intersections) or incompatible uses (e.g., farm equipment)? d) Result in inadequate ❑ emergency access? XVII. TRIBAL CULTURAL RESOURCES — Would the project: a) Cause a substantial adverse ❑ ❑ ❑ ❑ change in the significance of a tribal cultural resource, defined in Public Resources Code section 21074 as either a site, feature, place, cultural landscape that is geographically defined in terms of the size and scope of the landscape, sacred place, or object with cultural value to a California Native American tribe, and that is: i) Listed or eligible for ❑ ❑ ❑ ❑ ❑ ❑ listing in the California Register of Historical Resources, or in a local register of historical resources as defined in Public Resources Code section 5020.1(k), or Infill Environmental Checklist Form Page 17 of 20 FORM "S" 75D-243 Substantially Less Than Mitigated by Significant Uniformly With Less Than Analzed Applicable Significant Mitigation Significan No in the Development Impact Incorporated tImpact Impact Prior EIR Policies ii) A resource determined ❑ ❑ by the lead agency, in its discretion and supported by substantial evidence, to be significant pursuant to criteria set forth in subdivision (c) of Public Resources Code section 5024.1. In applying the criteria set forth in subdivision (c) of Public Resources Code section 5024.1, the lead agency shall consider the significance of the resource to a California Native American tribe. XVIII. UTILITIES AND SERVICE SYSTEMS — Would the project: a) Require or result in the El ❑ 11 ❑ ❑ relocation or construction of new or expanded water, wastewater treatment or storm water drainage, electric power, natural gas, or telecommunications facilities, the construction or relocation of which could cause significant environmental effects? b) Have sufficient water supplies El 11 ❑ ❑ available to serve the project and reasonably foreseeable future development during normal, dry and multiple dry years? c) Result in a determination by the El ❑ ❑ ❑ ❑ wastewater treatment provider which serves or may serve the project that it has adequate capacity to serve the project's projected demand in addition to the provider's existing commitments? Infill Environmental Checklist Form Page 18 of 20 FORM "S" 75D-244 Substantially Less Than Mitigated by Significant Uniformly With Less Than Analzed Applicable Significant Mitigation Significan No in the Development Impact Incorporated t Impact Impact Prior EIR Policies d) Generate solid waste in excess ❑ ❑ ❑ ❑ of State or local standards, or in excess of the capacity of local infrastructure, or otherwise impair the attainment of solid waste reduction goals? e) Comply with federal, state, and El 11 ❑ ❑ 11 El local management and reduction statutes and regulations related to solid waste? XIX. WILDFIRE— If located in or near ❑ ❑ ❑ ❑ 11 ❑ state responsibility areas or lands classified as very high fire hazard severity zones, would the project: a) Substantially impair an adopted ❑ El ❑ emergency response plan or emergency evacuation plan? b) Due to slope, prevailing winds, ❑ ❑ ❑ ❑ and other factors, exacerbate wildfire risks, and thereby expose project occupants to, pollutant concentrations from a wildfire or the uncontrolled spread of a wildfire? c) Require the installation or El EJ 11 ❑ ❑ 0 maintenance of associated infrastructure (such as roads, fuel breaks, emergency water sources, power lines or other utilities) that may exacerbate fire risk or that may result in temporary or ongoing impacts to the environment? d) Expose people or structures to 13 ❑ 11 ❑ ❑ 11 significant risks, including downslope or downstream flooding or landslides, as a result of runoff, post -fire slope instability, or drainage changes? Infill Envimnmental Checklist Fo m Page 19 of 20 FORM "S" 75D-245 XX. MANDATORY FINDINGS OF SIGNIFICANCE -- a) Does the project have the potential to substantially degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self-sustaining levels, threaten to eliminate a plant or animal community, substantially reduce the number or restrict the range of a rare or endangered plant or animal or eliminate important examples of the major periods of California history or prehistory? b) Does the project have impacts that are individually limited, but cumulatively considerable? ("Cumulatively considerable" means that the incremental effects of a project are considerable when viewed in connection with the effects of past projects, the effects of other current project, and the effects of probable future projects.) c) Does the project have environmental effects which will cause substantial adverse effects on human beings, either directly or indirectly? Less Than Significant With Less Than Significant Mitigation Significan Impact Incorporated t Impact No Impact ❑ ❑ ❑ ❑ U Authority: Public Resources Code Sections 21083, 21094.5.5 Reference: Public Resources Code Sections 21094.5 and 21094.5.5 El 9 El a Substantially Mitigated by Uniformly Analzed Applicable in the Development PriorEIR Policies ❑ ❑ El 11 Infill Environmental Checklist Form Page 20 of 20 FORM "S" 75D-246 Local Guidelines for Implementing the California Environmental Ouality Act (2019) Common ACRONYMS 13. COMMON ACRONYMS A. ******************+************************** ADEIR — Administrative Draft Environmental Impact Report AQMD — Air Quality Management District AQMP — Air Quality Management Plan AR— Administrative Record ARB — Air Resources Board B.**************+*********+++*********+********** BMP — Best Management Practices BO — Biological Opinion Cal EPA — California Environmental Protection Agency CAP — Climate Action Plan CCAA — California Clean Air Act CCR— California Code of Regulations (Title 14 Sections 15000 et seq. are also known as the State CEQA Guidelines.) CE — Categorical Exclusion (NEPA) CESA— California Endangered Species Act CEQA — California Environmental Quality Act CFR — Code of Federal Regulations CMP — Congestion Management Plan CRWQCB — California Regional Water Quality Control Board D.************************************ DEIR — Draft Environmental Impact Report DFW — Department of Fish and Wildlife E.******************************************** EA — Environmental Assessment (NEPA term) EIR — Environmental Impact Report EIS — Environmental Impact Statement (NEPA term) EPA — Environmental Protection Agency ESA — Endangered Species Act; Environmental Site Assessment F.****************s*********** FCAA — Federal Clean Air Act FEIR — Final Environmental Impact Report FOIA — Freedom of Information Act (Federal) FONSI — Finding of No Significant Impact (NEPA term) FWS — Fish and Wildlife Service 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-247 Local Guidelines for implementing the California Environmental Ouality Act (2019) Common ACRONYMS G.*********+****************+**+*************++**** GHG — Greenhouse Gas GW — Ground Water H.********+*+***********+*+****+********+*++++* HH&E — Human Health and Environment HRA — Health Risk Assessment HS — Hazardous Substance IS — Initial Study J.***********+*+*********************+*+**+*+++** K.**************+****+******+**+***************** LADD — Lifetime Average Daily Dose; Lowest Acceptable Daily Dose LEA — Local Enforcement Agency LESA — Land Evaluation and Site Assessment LUFT — Leaking Underground Fuel Tank LUST — Leaking Underground Storage Tanks. Reference Part 213 of Public Act 451 of 1994. MEIR — Master Environmental Impact Report MMRP — Mitigation Monitoring and Reporting Plan MPO — Metropolitan Planning Organization MND — Mitigated Negative Declaration N.*****+***+***********************+*+++***++****** ND — Negative Declaration NEPA — National Environmental Policy Act NOA —Notice of Availability NOC —Notice of Completion NOD — Notice of Determination NOE — Notice of Exemption NOI — Notice of Intent NOP —Notice of Preparation NOV —Notice of Violation O.*****k******************++*********************** OPR — Office of Planning and Research 2019 City of Sauta Ana Local Guidelines ®Best Best & Krieger LLP 75D-248 Local Guidelines for Implementing the California Environmental Ouality Act (2019) Common ACRONYMS P.*******K********************************** PEIR — Program Environmental Impact Report. Sometimes also used to describe a Project Environmental Impact Report PM — Particulate Matter PRA — Public Records Act PSA — Permit Streamlining Act Q. ********+*****+**++++***+***+************** R.**************************++**+*****+*********** RCRA — Resource Conservation and Recovery Act (1976) Governs definition, handling, and disposal of hazardous waste. S.*+**********++**********+********************* SCH — State Clearinghouse SEIR— Supplemental or Subsequent Environmental Impact Report SMARA — Surface Mining and Reclamation Act SWMP — Stormwater Monitoring Program SWPPP — Stormwater Pollution Prevention Program T.***********************************+*** TCM — Transportation Control Measure TCP — Transportation Control Plan TDS — Total Dissolved Solids TNT — Transportation Management Plan Title V — refers to Title V of the Clean Air Act related to ambient air quality provisions TLV — Threshold Limit Value UBC — Uniform Building Code UFC — Uniform Fire Code UGST — Underground Storage Tank USDW — Underground Source of Drinking Water UWMP — Urban Water Management Plan V.***************»*******+***+*+*+*****+******+*+*** VOC — Volatile Organic Compounds (Health & Safety Code, Section 25123.6.) VOS — Vehicle Operating Survey W.*******++**************************** WQS — Water Quality Standard WSA— Water Supply Assessment WTP —Water Treatment Plant. A facility designed to provide treatment to water. W WTP — Wastewater Treatment Plan 2019 City of Santa Ana Local Guidelines ©Best Best & Krieger LLP 75D-249 Local Guidelines for Implementing the California Environmental Ouality Act (2019) Common ACRONYMS 2019 City of Santa Ana Local Guidelines ®Best Best & Krieger LLP 75D-250